NewKerala.com

Key Points

Union Minister HD Kumaraswamy has indicated that Tesla currently has no plans to establish manufacturing facilities in India, focusing instead on opening showrooms. Despite initial interest from Elon Musk, high import duties remain a significant barrier. Meanwhile, European automotive giants like Hyundai and Mercedes Benz are enthusiastic about setting up manufacturing units in India under the new electric vehicle policy. This policy incentivizes foreign investment with reduced duties and local sourcing requirements, making India an attractive destination for electric vehicle manufacturing.

Key Points: Elon Musk's Tesla Skips India Manufacturing Focuses on Showrooms

  • Tesla opts for showrooms over manufacturing in India
  • European carmakers Mercedes and Hyundai keen on Indian manufacturing
  • India's new EV policy attracts foreign investments with concessions
  • Tesla's interest flagged by India's import duty policies
2 min read

Tesla not interested in manufacturing in India, but many European countries have shown interest: Minister HD Kumaraswamy

HD Kumaraswamy reveals Tesla's India showroom plans as European firms eye manufacturing.

"Tesla, we are not actually expected from them, they are only to start showrooms. - HD Kumaraswamy"

New Delhi, June 2

Elon Musk-owned electric car manufacturer Tesla is not interested in manufacturing in India, instead, they are opening showrooms, Union Minister for Heavy Industries HD Kumaraswamy told reporters on Monday.

"Tesla, we are not actually expected from them, they are only to start showrooms. They are not interested in manufacturing in India," the minister said.

Heavy Industry Secretary Kamran Rizvi added, "So the real intent we'll know when we open the application and if the company still feels like investing. What minister sir is telling is about what people they come and told informally."

The minister however added that many European companies like Hyundai, Mercedes Benz, Skoda and Kia have shown interest in manufacturing units in India under the new EV policy.

The government also said that European companies are interested in investing in India as they have left hand drive like in India and they don't have to do much changes for exporting their cars, unlike US which has a right hand drive.

The new EV policy announced in 2022, has given many concessions for companies who will invest in India and set up manufacturing units.

The policy allows a duty of 15 per cent if a company invest USD 500 million in a manufacturing plant in India. In the first three years the company will have to source 25 per cent of parts locally which has to be increased to 50 per cent by end of fifth year.

The company will be allowed to export a maximum of 8,000 units annually to India against a highly reduced duty of 15 per cent.

Earlier, there were reports that Tesla was interested in importing Tesla car into India and subsequently sell it through their showrooms in India.

Tesla boss Musk had in past indicated that he was interested in investing in India, but "high import duty" structures were a bone of contention.

Tesla's intension to come into India had intensified after India announced its new EV policy, under which import duty was reduced to 15 per cent and many incentives provided for setting up manufacturing plant in India.

- ANI

Share this article:

Reader Comments

Here are 6 diverse Indian perspective comments for the Tesla article:
R
Rajesh K.
Tesla missing a big opportunity here! India's EV market is growing rapidly and local manufacturing would have given them first-mover advantage. European companies seem smarter to grab this chance. Make in India should be the way forward for all global brands.
P
Priya M.
Good that our government is standing firm on local manufacturing requirements. Why should we let Tesla just open showrooms when others are ready to invest in factories and create jobs? 🇮🇳 At least Hyundai and others are showing real commitment to India's growth.
A
Amit S.
Elon Musk keeps changing his mind about India. First he complains about import duties, then when policy changes, he still doesn't commit to manufacturing. Meanwhile Tata and Mahindra are making great progress with Indian EVs. Maybe we don't need Tesla after all!
S
Sunita R.
As an EV enthusiast, I'm disappointed. Tesla cars are technologically advanced but too expensive for most Indians. Maybe it's better to focus on affordable options like the upcoming Tata Curvv. Still, having Tesla showrooms would at least increase EV awareness 🤔
V
Vikram J.
The European companies' interest makes sense - their LHD cars need minimal changes for India. But Tesla's hesitation shows they don't understand our market properly. You can't sell $70k cars when average income is much lower. They should learn from Maruti's success with affordable models.
N
Neha P.
While Tesla's decision is disappointing, we must appreciate that our EV policy is attracting other global players. The local sourcing requirements will boost our component manufacturing ecosystem. In long run, this might be better for India's auto industry than depending on one company.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50