Elon Musk's Tesla 'Not Interested' In Manufacturing EVs In India: Union Minister Kumaraswamy

Global EV giant Tesla is not interested in manufacturing cars in India but keen on establishing showrooms in the country, Union Heavy Industries Minister H D Kumaraswamy said on Monday.

US President Donald Trump has said that if Tesla were to build a factory in India to circumvent that country's tariffs, it would be "unfair" to the US.

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"Tesla... They are more (interested) only to start showrooms. They are not interested to (start) manufacturing in India," Kumaraswamy told reporters here.

The minister made the remarks at a press conference to announce the unveiling of guidelines for the Scheme to Promote Manufacturing of Electric Cars in India.

"So far they (Tesla) have not shown interest. Tesla representative only participated in the first round of stakeholder discussions for the Scheme to Promote Manufacturing of Electric Cars in India. The company's representative was not part of the second and third round of the stakeholder deliberations," an official told PTI.

Tesla CEO billionaire Elon Musk had said in April last year that his visit to India has been delayed due to the company's heavy obligations.

Mercedes Benz, Volkswagen-Skoda, Hyundai, Kia show interest Global automobile makers including Mercedes Benz, Skoda-Volkswagen, Hyundai and Kia have shown interest in manufacturing electric cars in India, Kumaraswamy said during the discussion.

"Mercedes Benz, Vokswagen, Skoda, Hyundai, Kia all these companies have already shown interest," Kumaraswamy told reporters here.

To encourage the global manufacturers to invest under the scheme, the approved applicants will be allowed to import Completely Built-in Units (CBUs) of e-4W with a minimum CIF (cost, insurance and freight) value of USD 35,000 at reduced customs duty of 15 per cent for a period of 5 years from the application approval date.

Approved applicants would be required to make a minimum investment of Rs 4,150 crore in line with the provisions of the scheme.

The window for receiving applications through the Notice Inviting Applications will be for a period of 120 days (or more). Further, the Ministry of Heavy Industries shall have the right to open the application window, as and when required till March 15, 2026.