Elon Musk's Tesla only keen on selling cars in India, not setting up local factory despite new EV manufacturing scheme

Time of India

5 days ago

Elon Musk's
Tesla
has shown no interest in setting up a manufacturing plant in
India
and is currently focused only on selling its cars in the country. Union Minister for
Heavy Industries and Steel
,
HD Kumaraswamy
, said on Tuesday that the company is keen on opening a showroom in India.
"Tesla is only interested in opening a showroom till now. They want to sell their car in India. There is no further development about Tesla,"
Kumaraswamy
said during the launch of an application portal for electric vehicle (EV) manufacturers.
The statement comes amid ongoing speculation about Tesla's plans to establish a production unit in India, especially as the government has rolled out a scheme aimed at encouraging local EV manufacturing.
India rolls out new EV manufacturing scheme
The Ministry of Heavy Industries (MHI) has launched a scheme to support the domestic production of passenger vehicles, with a particular emphasis on electric cars. The initiative is designed to attract investments from global EV players and promote India as a competitive manufacturing base.
The scheme aligns with the government's broader "Make in India" objective and aims to create employment while enhancing India's role in the global EV market.
Import concessions and investment requirements
Under the scheme, applicants will be allowed to import Completely Built Units (CBUs) of electric four-wheelers, provided the CIF (Cost, Insurance, and
Freight
) value of each unit is a minimum of $35,000. These imports will benefit from a reduced customs duty rate of 15% for a period of five years from the date of application approval.
However, in return for these benefits, companies are required to invest at least ₹4,150 crore in India under the provisions of the scheme. This is aimed at encouraging long-term commitment to the Indian market by both global and domestic EV manufacturers.
Application window open till October
The government has opened a dedicated online portal for applications under this scheme. According to the Ministry, the portal will be active from 24 June 2025 at 10:30 am and will remain open till 21 October 2025, 6:00 pm.
The ministry believes that the ₹4,150 crore minimum investment clause, combined with reduced import duties, creates an enabling environment for global EV players to consider long-term manufacturing operations in India.
For now, Tesla's limited interest appears focused only on direct car sales, leaving questions open about whether the company will participate in India's push to become an EV manufacturing hub.