New Delhi [India], June 2 (ANI): Tesla, the electric vehicle giant helmed by Elon Musk, is not currently interested in setting up a manufacturing facility in India and is only focused on launching showrooms in the country, Union Minister for Heavy Industries HD Kumaraswamy said on Monday.
The remarks come as the Indian government intensifies efforts to boost domestic manufacturing of passenger vehicles, particularly electric vehicles (EVs), under a new policy framework.
“Tesla… they are only to start showrooms. They are not interested in manufacturing in India,” said Minister Kumaraswamy, emphasizing the limited scope of Tesla’s current interest in the Indian market.
Heavy Industry Secretary Kamran Rizvi provided additional context, noting, “The real intent we’ll know when we open the application. What the Minister sir is telling is about what people… they come and told informally.”
While Tesla appears hesitant about manufacturing in India, Minister Kumaraswamy highlighted strong interest from several European automakers. Companies such as Hyundai, Mercedes-Benz, Skoda, and Kia have reportedly shown enthusiasm for establishing production units under the newly introduced EV manufacturing scheme.
Earlier reports had indicated that Tesla was considering importing its cars to India for retail via company-owned showrooms. Tesla CEO Elon Musk had previously expressed an interest in entering the Indian market, although high import duties remained a major deterrent.
India’s new EV policy, which was announced in March 2024, attempts to address these concerns by offering substantial incentives, including reduced import duties, for companies willing to manufacture vehicles domestically. Under the scheme, approved applicants can import electric four-wheelers—classified as Completely Built Units (CBUs)—with a minimum Cost, Insurance, and Freight (CIF) value of USD 35,000 at a reduced customs duty rate of 15 percent for five years from the approval date.
Adding a personal note to the discussion, Errol Musk—father of Elon Musk—who is currently in India, expressed personal enthusiasm for Tesla’s presence in the country. “That is something that I have to be careful not to say too much about. Tesla is a public company. It’s not ours… When you look at India and the population, the kind of people you’ve got here, the energy and everything… I’m very inclined to say, wait, why aren’t we having Teslas here. But I can’t say too much. That’s just a personal point of view,” he said, responding to a query about Tesla’s plans for India.
Meanwhile, the Ministry of Heavy Industries (MHI) officially released the detailed guidelines for the “Scheme to Promote Manufacturing of Electric Passenger Cars in India” (SPMEPCI). Originally notified on March 15, 2024, the scheme aligns with India’s broader goals of achieving net-zero emissions by 2070, promoting sustainable mobility, enhancing economic growth, and minimizing environmental impact.
The Department of Revenue had also issued a parallel notification on the same date, enabling reduced import duties in line with the new policy. The government plans to issue an official notice inviting applications under the scheme shortly, allowing potential applicants to submit their proposals online.
To qualify under the scheme, companies must make a minimum investment of Rs 4,150 crore. In return, they will be granted incentives to boost electric vehicle production in India. The initiative aims to attract foreign investment, generate employment, and firmly position India on the global EV manufacturing map—supporting the national “Make in India” vision.
Despite Tesla’s current stance, the government remains optimistic that global EV manufacturers will see value in India’s long-term market potential and policy support. (ANI)
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