Tesla not interested in manufacturing in India, keen on opening showrooms: Union Minister HD Kumaraswamy

Despite a lot of hypes and recent developments, Tesla may not set manufacturing plant in India. Instead, it would only open showrooms in major cities and sell its electric cars via CBU (Completely Built Unit) routes. Union Minister for Heavy Industries HD Kumaraswamy has said that the US electric car manufacturer is not interested in manufacturing in India. However, he also mentioned that Tesla is keen on opening showrooms in the country. This comes at a time when the Indian government has amended its electric vehicle policy to attract investments from major foreign players in the segment, like Tesla and the automaker too ramped up the pace of its India operations by hiring for various roles.

Kumaraswamy's remarks came amid the Indian government's push to promote domestic manufacturing of passenger vehicles, with a special focus on electric vehicles, news agency ANI has reported. "Tesla...they are only to start showrooms. They are not interested in manufacturing in India," the minister reportedly said. Speaking further on the issue, Heavy Industry Secretary Kamran Rizvi added, “The real intent we'll know when we open the application." He noted that there is no such official communication yet from Tesla.

Meanwhile, the minister also added that many global auto companies such as Hyundai, Mercedes-Benz, Skoda and Kia have shown their interest in setting up manufacturing units in India under the government's new EV policy. Earlier, there were reports that Tesla was interested in importing its electric cars into India and subsequently selling them through their showrooms in India.

Tesla boss Musk had in the past indicated that he was interested in investing in India, but high import duty structures were a bone of contention between the company and the Indian government. Tesla's intention to enter the Indian market intensified after the Indian government announced its new EV policy, under which import duty was reduced to 15 per cent and many incentives were provided for setting up a manufacturing plant in India.

Elon Musk's father keen on Tesla's presence in India

Meanwhile, Elon Musk's father Servotec's Errol Musk, who is touring in India, appeared keen on 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 and when I hear that, with great respect, BYD and various others are coming in, and Tatas and Mahindra are making great cars, 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 reportedly said.

India issues guidelines for domestic EV manufacturing

The Indian government on Monday notified guidelines for the Scheme to Promote Manufacturing of Electric Passenger Cars in India. The central government approved a forward-looking scheme to promote the domestic manufacturing of passenger cars, with a special focus on electric vehicles.

The initiative is aligned with India's national goals of achieving a net-zero target by 2070, fostering sustainable mobility, driving economic growth, and reducing environmental impact. The Indian government aims to make the country a premier global destination for automotive manufacturing and innovation.

The scheme shall help to attract investments from global EV manufacturers and promote India as a manufacturing destination for electric vehicles. The Scheme will also help put India on the global map for manufacturing of EVs, generate employment and achieve the goal of “Make in India", claims the report.

Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape.