Tesla has no plans to manufacture electric vehicles in India, a senior government minister said on Monday, as the country finalized a long-anticipated electric vehicle (EV) policy aimed at attracting global automakers.
“Tesla, we are not actually expecting (interest) from them. They are not interested in manufacturing in India,” said Minister for Heavy Industries HD Kumaraswamy while addressing reporters.
The Indian government’s new EV policy offers significant import tax reductions for foreign automakers that commit to investing around $500 million in domestic EV production. Companies taking part will be allowed to import a limited number of EVs at a reduced duty of 15%, compared to the current 70%, provided they set up manufacturing facilities within three years and meet local content requirements.
Originally designed to attract Tesla to the country, the policy now appears to have limited influence on the EV giant. CEO Elon Musk put investment plans on hold last year, and the company’s immediate focus remains on importing vehicles into India.
This is despite Musk’s repeated criticism of the country’s high import tariffs.
While Tesla distances itself from Indian production, other global automakers like Mercedes-Benz, Volkswagen, Hyundai, and Kia have expressed interest in participating in India’s EV manufacturing scheme.
India, the world’s third-largest car market, is seeking to boost EV sales from 2.5% of total car sales in 2024, dominated by Tata Motors, to 30% by 2030. Domestic companies like Tata Motors and Mahindra & Mahindra have already made significant investments in local EV production and have lobbied against the proposed duty cuts.
The new scheme allows limited investment in machinery, research, and charging infrastructure. However, the lack of a widespread fast-charging network continues to be a major hurdle for EV adoption in the country.
