India launched a scheme to encourage the import and local production of electric vehicles last year. To attract investors, the country offered reduced import tariffs. At the time, reports suggested that India’s scheme was likely directed at companies like Tesla, which had openly admitted that it was considering a major investment in the country. The response to the scheme has proven lukewarm, however, and Tesla is yet to finalize an investment in India.
India, however, does not seem to be giving up its aspirations to secure a deal with companies like Tesla. Back in April 2024, a first stakeholder consultation on the scheme was held with several companies. In attendance were Tesla, Tata Motors, Maruti Suzuki, Mahindra, Hyundai, BMW, Kia, Volkswagen, Mercedes, Toyota, Renault-Nissan, and even VinFast, which joined the meeting through a video call. At the time, however, few companies showed any strong interest in participating in the scheme.