Tesla to make Rs 20 lakh car for India: Report

The meeting between Indian Prime Minister Narendra Modi and Tesla CEO Elon Musk in the US in June 2023 is finally accelerating Tesla’s plan to finally enter the Indian car market. Days after their meeting, Tesla once again started discussions with the Indian Government to set up a production facility for Tesla in India.

Tesla to make Rs 20 lakh car for India: Report

A government source has revealed to TOI that Tesla is discussing the government officials to set up a production facility with an annual production capacity of 5 lakh electric vehicles. In the discussions, Tesla has also indicated that the majority of the volumes from this production facility in India will be that of a Rs 20 lakh (sub-$25,000) electric vehicle, on which Tesla is already working for emerging markets.

If Tesla finally concludes setting up a production facility in India, this Indian facility will become a production hub for Tesla’s much-publicized $25,000 electric car for the world, especially for the Indo-Pacific region. Currently, Tesla has a production facility in China as its only Asian manufacturing plant.

Tesla had begun the possibilities of its Indian operations a couple of years ago, requesting the Indian government to allow a reduction in taxes for facilitating the import of its electric vehicles from China. However, due to the firm stand of the Indian government on locally manufacturing or assembling cars instead of importing from other countries and not reducing import taxes, Tesla had to decelerate its plans for the Indian market.

Tesla resumes talks with Indian Government

In May, Tesla resumed its discussions with the Indian Government under the leadership of Narendra Modi for resuming its plans for the Indian car market and making it a major hub for exports to other countries. The progress in these plans saw a major event when Prime Minister Modi met Elon Musk during his state visit to the US in June 2023. Praising Modi and his vision for India, Musk also confirmed that Tesla is figuring out the right time and plans for the Indian market.

Companies all around the world are already working on diversifying their productions beyond China in Asia, and India is one of those countries with the highest potential, thanks to the abundance of resources and geographical diversities. In recent times, major global players like Triumph and Harley-Davidson have also revised their strategies for emerging markets, making India a base for their plans. Tesla is sighting the same vision, and its Indian facility comes a reality, the local production of the new $25,000 Tesla electric vehicle will be a big boost to the “Make-In-India” initiative.

Shantonil Nag

Shantonil brings a refined blend of expertise and enthusiasm to motoring journalism at With a career spanning over 11 years, he anchors Cartoq's insightful car reviews and test drives. His journalistic journey began as a correspondent at, where he honed his skills in content writing and scripting car reviews. Later, as Senior Editor for, his expanded role included curating and structuring web content. At, his expanded role includes assisting the video team to create high-quality car reviews. (Full bio)