Elon Musk’s Tesla does not plan to manufacture electric vehicles in India. On Monday, Union Minister HD Kumaraswamy confirmed this. He stated, “Tesla only wants to open showrooms and sell imported cars.” Although India introduced a new EV policy to attract global carmakers, Tesla seems uninterested in setting up a plant.
Government to Invite EV Manufacturing Applications
Meanwhile, Kumaraswamy announced that India will soon invite applications under its EV manufacturing policy. He noted that carmakers like Mercedes-Benz, Skoda-Volkswagen, Hyundai, and Kia have shown strong interest in producing electric vehicles in the country.
New Policy Offers Lower Taxes for EV Imports
To encourage local production, the government launched a scheme offering major tax cuts. Under this plan, companies that invest at least $486 million to build EVs in India will benefit from reduced import duties.
Specifically, they can import a limited number of electric vehicles at just 15% duty — significantly lower than the existing 70% rate.
Tesla Missing Out on Manufacturing Opportunity
So far, Tesla has not responded positively to the offer. Instead of manufacturing locally, it wants to sell imported cars. However, the government hopes the new policy will attract serious investors and boost India’s EV market. As more global brands show interest, India looks forward to becoming a key hub for electric vehicle production.
