Tesla decides to rely on imports rather than local production in India, which goes against the country's emphasis on local manufacturing for economic growth.
The automaker had hesitated to commit to local production in India, seen as vital for a stronger market presence in the country.
India's Heavy Industry Minister confirmed Tesla's strategy to not manufacture cars locally but establish a market presence through showrooms.
India is reducing import duties on vehicles to attract companies like Tesla, who face challenges due to high duties, aiming to boost electric vehicle sales in the country.