New EV Policy, But No Tesla Yet

India okays new EV policy but Tesla still not interested in local manufacturing.

June 03, 2025 • Reading Time: 6 minutes

Hello,
Markets saw a highly volatile session, opening sharply lower following US President Donald Trump’s announcement of a 50% tariff on steel imports. However, losses were capped by supportive domestic cues, including expectations of an RBI rate cut, improved monsoon outlook, strong Q4 GDP numbers, and higher GST collections.

Meanwhile, India has finalised its new EV policy, offering reduced import duties and incentives for local manufacturing. Despite this, the Union Minister stated that Tesla remains uninterested in setting up manufacturing in the country.

In other developments, Aequs has filed confidential draft papers with SEBI to raise $200 million, while KKR has extended $600 million in credit to Manipal Group—its largest private credit investment in India to date.

As of 02/06/25

  • Indian frontline indices saw a highly volatile session on Monday, June 2, but ended with only minor losses as strong buying interest in the second half helped offset early declines.

  • Markets opened sharply lower, spooked by US President Donald Trump's announcement of 50% tariffs on steel imports, reigniting fears of a global trade war.

  • Additional pressure came from rising geopolitical tensions due to the Russia-Ukraine conflict, a spike in Covid-19 cases in India, and nervousness ahead of the RBI’s upcoming policy decision.

  • However, the overall sentiment was supported by positive domestic cues such as the potential for an RBI rate cut, better monsoon forecasts, robust Q4 GDP data, and higher GST collections.

Nifty 50

(0.14%)

24,716.60

BSE Sensex

(0.09%)

81,373.75

Nifty Bank

0.28%

55,903.40

Nifty IT

(0.70%)

37,061.85

Nifty Vix

6.72%

17.16

USD>INR

(0.20%)

85.32

Source: Moneycontrol

Godrej Consumer Products +2.71%

  • Shares of Godrej Consumer Products led gains on the Nifty FMCG index, rising nearly 3% on June 2.

  • Select FMCG stocks saw a boost after the government cut the basic import duty on crude edible oils, improving sentiment in an otherwise muted trading session.

JSW Steel (1.48%)

  • Steel stocks came under pressure after US President Trump announced a plan to double tariffs on imported steel from 25% to 50%, effective June 4.

  • The announcement, made during a campaign rally at a US Steel facility in Pennsylvania, is expected to heighten challenges for global steelmakers.

  • Shares of JSW Steel, Tata Steel, and SAIL all declined following the news.

  • India finalises new EV policy with reduced import duties, incentives to set up local manufacturing. (ET)

  • Tesla not interested in manufacturing EVs in India, says Union minister. (BS)

  • IEA urges India to prioritise mobility electrification for energy security. (BS)

  • India's health insurance sector faces growth and profitability challenges: report. (ET)

  • Aequs files confidential draft papers with SEBI, plans to raise ₹1701 crore ($200Mn). (ET)

There are no mainboard IPOs this week.

M&A / Investments

  • Jindal stainless acquires 33.64% stake in SPV formed with Oyster Renewable Energy. (NDTV)

Debt

  • KKR lends ₹5,105 crore ($600Mn) to Manipal Group in its largest credit investment. (BW)

VC

Category

Company

Amount

B2B Ecom

Udaan

₹970 crore ($114Mn)

Furniture

Pepperfry

₹43 crore ($5Mn)

Fintech

Spense

₹15.7 crore ($1.8Mn)

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