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Tesla is reportedly closing in on a $2 billion deal to build a factory deal in India after years of ups and downs in negotiations.

India has the biggest auto market that Tesla has yet to enter.

There has been a ton of back and forth between the Indian government and Tesla to make it happen, but the negotiations have been harder than usual.

The Indian government wants Tesla to build a factory in the country in order for them to enter the market, but the automaker prefers to first test the waters with imported vehicles.

However, India has strong EV import duties that prevent that.

In 2021, Tesla officially incorporated an Indian company in Bengaluru, the capital of India’s southern Karnataka state. During the summer, Indian government officials said that they are considering Tesla’s proposal to greatly reduce import duties for electric cars.

Later that year, Tesla vehicles have been spotted being tested on Indian roads (pictured above), and it got seven electric vehicle variants approved in the country.

However, the company wasn’t able to come to a deal on import tariffs, and in 2022, Tesla decided to put its plans to enter the Indian market on hold.

Over the last year, there has been a renewed effort for Tesla to enter the market and the company has engaged with the government in new negotiations.

Earlier this month, we learned that India was again considering a special deal with Tesla to reduce the import duties.

Now Bloomberg reports that Tesla is getting close to a deal that would involve a $2 billion investment in a factory:

India is closing in on an agreement with Tesla Inc. that would allow the US automaker to ship its electric cars to the country from next year and set up a factory within two years, according to people familiar with the Indian government’s thinking.

According to the report, on top of the $2 billion investment in a factory, Tesla would commit to buying $15 billion in parts from Indian suppliers.

The automaker is reportedly also considering a battery factory in the country.

Electrek’s Take

I’ve heard that one before. We have been burned by Tesla’s entry into India before so I’m not putting too much weight on that report.

I’ll believe it when I see it, but we know that Tesla teams have met frequently with Indian officials in recent months so it’s not impossible that they are getting close to a deal.

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Honda is already testing a new electrified Civic: Here’s our first look

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Honda is already testing a new electrified Civic: Here's our first look

A new Civic is in the works that’s bringing much more than just a new look to Honda’s best-selling vehicle. Here’s our first look at the next-gen Honda Civic.

Honda previews next-gen Civic with new hybrid system

During an event held for the media on Wednesday, Honda offered a look at some of the advanced new tech it plans to roll out over the next few years.

Although it just launched the current Civic Hybrid last year, Honda is already working on its replacement. Honda didn’t confirm or deny that the Civic was under the camouflage, but it was pretty evident.

The new Civic will ride on Honda’s next-gen hybrid (HEV) platform, designed for mid-size vehicles. Honda’s new hybrid system is nearly 200 lbs (90 kg) lighter and more flexible, which it said provides “excellent fuel economy” while also improving the driving experience.

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According to Car and Driver, which drove the new Civic, the interior is also getting redesigned. Honda covered most of it, but you could still see what appeared to be a larger, at least 15″ infotainment screen at the center.

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Honda tests new hybrid (HEV) platform (Source: Honda)

Honda is keeping most powertrain details a secret for now, but the new Civic appears to have an electrified drive unit similar to those found in the Accord and CR-V.

The company said the direct-drive motor and generator motor are smaller, more efficient, and free from rare-earth materials. Honda also said the battery, located under the rear seat, is all-new. It will be used for upcoming compact and mid-size vehicles, which Honda said will help reduce costs.

Honda-Civic-new-hybrid-platform
(Source: Honda)

As for how it drives, Car and Driver said the new Honda Civic was quick off the line thanks to its direct-drive setup. However, the test track was too smooth to really judge the ride quality.

Like the new Honda Prelude, the Civic will feature S+ Shift, which simulates gear-shifting via paddles on the steering wheel.

Honda-Civic-new-hybrid
(Source: Honda)

The prototype had exhaust pipes, but they likely won’t make it to the production model. Honda plans to launch several next-gen hybrids on the new HEV platform, starting from 2027. The next-gen Honda Accord may even arrive before the Civic, debuting on the hybrid system.

Honda said it’s also developing a next-gen platform for large-size HEVs to meet the growing demand in North America.

Using a next-gen V6 engine with extended fuel-efficient range, Honda said it aims to improve fuel efficiency by 30% compared to its current ICE vehicles. Honda’s larger HEVs will likely go on sale closer to 2028.

Honda also showcased the Super-ONE Prototype during the event, its compact EV set to launch in Japan in 2026, followed by the UK and other global markets.

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Will Zero bring its new 60 MPH electric scooter to the US?

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Will Zero bring its new 60 MPH electric scooter to the US?

Zero Motorcycles turned heads in Milan at EICMA 2025 with the unveiling of its new LS1 electric scooter, a sleek and practical 60 mph (100 km/h) commuter built for European city streets. With its swappable batteries, off-board charging, and smart safety tech like ABS and traction control, the LS1 is clearly a strong contender in the urban EV space. It also marks a major shift for Zero, expanding beyond full-size electric motorcycles into a more accessible, everyday format.

But will it come to the US market?

At the show I had the chance to speak with James Callahan of Zero, and he confirmed that the LS1 is not coming to the US market, at least not in its current form or in the near future. “The scooter market in the US is still very small,” Callahan explained, “so for now, we’re focused on Europe, where the demand is much higher.”

And while interest from American riders may exist, there’s another hurdle: the LS1 isn’t homologated for the US, meaning it doesn’t meet certain regulatory standards like the NHTSA’s lighting requirements. Its slick continuous LED turn signal bar would need to be redesigned entirely, among other tweaks to the design.

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The LS1 comes equipped with two removable batteries that live in the floorboard and can be charged indoors using an 800W charger – or even faster with a 1,500W upgrade. A third battery can be added under the seat for extended range, while that same underseat storage area also hides a cavity large enough for a helmet or groceries.

Add in a low seat height, a short wheelbase, and user-friendly features, and you’ve got a solid commuter platform. But it’s a platform that we’re not likely to see in the US for a long time.

So while the LS1 represents an exciting new chapter for Zero in Europe, fitting with the company’s recent move out of California and into the Netherlands, don’t expect to see it zipping down US streets anytime soon.

Though it’s not all bad news for our American readers. There’s a spark of hope that Zero’s more affordable off-road electric motorcycles launched in the US market this year could be getting street-legal homologation, though not immediately. More on that soon…

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Toyota’s selling cars faster than it can build them, saying it can ‘barely cover the demand’

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Toyota's selling cars faster than it can build them, saying it can 'barely cover the demand'

Toyota is selling cars faster than it can build them. With strong demand for hybrids, the company says it can “barely cover the demand.”

Toyota’s hybrids fuel sales growth in 2025

After reporting its fiscal second-quarter earnings on Wednesday, Toyota raised its sales and earnings forecast for the year.

In the first half of the fiscal year, the company sold a record 5.27 million vehicles, up 105% compared to the same period in 2024. Those numbers include its luxury Lexus brand.

Toyota said “strong demand from customers around the world” led to higher sales, particularly in Japan and North America. Hybrid vehicles primarily drove growth, with higher demand in competitive markets such as North America and China.

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The Japanese automaker sold 2.27 million hybrids (HEVs) in the first six months of the fiscal year 2026. Including battery-electric vehicles (BEVs), plug-in hybrids (PHEVs), and fuel-cell electric vehicles (FCEVs), Toyota’s total “electrified” vehicles accounted for 47% of its total sales.

Toyota-sales-Q2-2026
(Source: Toyota)

Toyota said the new RAV4, its best-selling vehicle globally, is carrying the growth as the first to adopt its software-defined platform, Arene.

Like most automakers, Toyota took a hit from the US auto tariffs. The company expects the 15% tariff will cost an extra 1.45 trillion yen ($9.4 billion) in the fiscal year.

Toyota-hybrid-sales
Toyota RAV4 PHEV (Source: Toyota)

Toyota expects higher sales, and cost-cutting measures will lessen the blow. It raised operating profit guidance for the fiscal year ending March 31, 2026, to 3.4 trillion yen ($22 billion). That’s up from its previous guidance of 3.2 trillion yen ($20.8 billion), but still a 28% decrease compared to the previous fiscal year.

Toyota-2026-bZ-prices
2026 Toyota bZ electric SUV (Source: Toyota)

“In terms of sales, we expect a very healthy situation going forward,” Toyota’s CFO, Kenta Kon, said during a news conference with reporters on Wednesday (via Automotive News).

According to Kon, Toyota is still seeing “strong demand,” so much so that “we can barely cover the demand,” he added.

Electrek’s Take

Although hybrids are carrying the growth, Toyota’s BEV sales are still lagging. In the US, Toyota sold just 61 bZ electric SUVs in September. Through the first nine months of the year, Toyota sold just 12,264 bZs, down from 13,577 in the same period last year.

With the 2026 BZ upgrade rolling out and new EVs arriving soon, including the C-HR and bZ Woodland, Toyota’s BEV sales are expected to gain momentum over the next few months finally.

At the Japan Mobility Show, the company revealed plans for five unique brands under the Toyota Group, which it says will provide a diverse range of vehicles designed for every buyer.

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