Elon Musk’s Tesla ‘not interested’ to produce, manufacture in India, says Union minister HD Kumaraswamy

Elon Musk-owned Tesla is reportedly not keen on setting up manufacturing and production units in India. As per the statement from Union minister for heavy industries HD Kumaraswamy, Tesla is only interested in expanding its showrooms in India.

“Tesla, we are not actually expected from them, they are only to start showrooms. They are not interested in manufacturing in India,” the minister was quoted as saying by news agency ANI.

Kumaraswamy further added that despite the disinterest from Tesla, several international companies such as Hyundai, Mercedes Benz, Skoda and Kia have shown interest to set up manufacturing units in India based on the new policy for electric vehicles.

Under the new EV policy, companies are allowed a 15 pe rcent duty if the company invests 500 million US dollars to set up a manufacturing plant in India. The companies will also be required to source 25 per cent of the parts from India for the first three years, and then expand to 50 per cent by the fifth year. 

Speaking to reporters, the union minister added that the application window for the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI), will be open soon.

Trump’s tariffs behind Tesla’s pull back?

Amid his tariff spree, US President Donald Trump stated that Tesla’s plans of opening a factory in India would be “very unfair.”

A similar warning for given to Apple CEO Tim Cook after he announced that the company is considering shifting its production to India in view of the high tariffs against China.

For the past few years, Tesla has been considering setting up manufacturing and production in India. Elon Musk had also stated that India’s high import duties were a key barrier halting Tesla’s expansion in the country.