TL;DR
Tesla's sales in India are low due to high import duties and weak infrastructure, even as Haryana hopes to host its first manufacturing plant, while the broader EV policy faces criticism for potentially deterring global players.
Tesla's highly anticipated entry into the Indian electric vehicle market has encountered significant hurdles, with the company selling just over 100 cars since July 2025, falling considerably short of initial bookings. This slow adoption is primarily attributed to high import duties and a nascent charging infrastructure, as India's EV passenger vehicle market constitutes less than 3% of total car sales.
Despite these challenges, Haryana Chief Minister Nayab Singh Saini expressed optimism on November 27, 2025, that Tesla will establish its first electric vehicle manufacturing plant in India within Haryana. This announcement came during the inauguration of India's first all-in-one Tesla India Motors centre in Gurugram, a facility designed to support growing EV interest by combining retail, service, delivery, and V4 supercharging facilities.
The state government is actively working to enhance the ease of doing business, introducing special leasing policies for industrial plots and strengthening local supply chains to attract global investments. However, the broader Indian EV policy itself, which offers reduced import duties for companies investing in local manufacturing, faces skepticism, with some analysts suggesting it might be a 'non-starter' for major global players like Tesla due to stringent conditions and preferences for imports over local production.
