Elon Musk-owned Tesla is reportedly not interested in establishing manufacturing and production units in India. According to Union Minister for Heavy Industries HD Kumaraswamy, Tesla’s current focus is only on expanding its showroom presence in the country.
“Tesla is not expected to manufacture in India; they are only planning to open showrooms,” the minister told news agency ANI.
Despite Tesla’s lack of interest, Kumaraswamy highlighted that several global automakers—including Hyundai, Mercedes-Benz, Skoda, and Kia—have expressed willingness to invest in manufacturing in India under the new electric vehicle (EV) policy.
As per the policy, companies investing $500 million to set up EV manufacturing plants in India will benefit from a reduced import duty of 15%. They must also source 25% of their components locally within the first three years, increasing to 50% by the fifth year.
Kumaraswamy also noted that the application window for the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) will open soon.
US Tariffs May Be a Factor
Some speculate that US President Donald Trump’s aggressive tariff stance may have influenced Tesla’s hesitation. Trump recently commented that Tesla opening a factory in India would be “very unfair,” echoing similar concerns he raised with Apple CEO Tim Cook when the company considered relocating production from China to India.
Tesla has been evaluating the Indian market for several years, but Elon Musk has cited India’s high import duties as a major obstacle to launching full-scale operations in the country.
