Elon Musk’s Tesla ‘not interested’ in manufacturing in India, minister says
Elon Musk backs away from making EVs in India as minister says Tesla ‘not interested’
- Tesla is no longer expected to manufacture electric vehicles in India despite government incentives, according to the country’s heavy industries minister HD Kumaraswamy.
- Mr Kumaraswamy said that Tesla has not shown interest in the Modi government’s new EV manufacturing scheme, and is instead looking to open two retail showrooms.
- The Indian government issued formal guidelines for its EV policy, offering reduced import duties to foreign carmakers committing to invest at least $500m and start local production within three years, a policy initially designed to attract Tesla.
- Tesla had participated in early discussions but reportedly did not join later rounds, with previous plans being shelved in 2022 after India insisted on local manufacturing.
- Analysts suggest that India’s EV market may not be ready for Tesla’s premium models, citing low EV sales and cheaper domestic alternatives.