Athira Sethu
Kochi, 3 June 2025
Tesla, the iconic electric car maker owned by Elon Musk, is not looking to manufacture cars in India currently. They merely want to set up showrooms, India’s Heavy Industries Minister HD Kumaraswamy has said.
The government of India is attempting every bit to get more electric vehicles produced in India. It went ahead even to initiate a new policy to prompt industries to establish electric vehicle (EV) plants within India. But at present, Tesla does not appear keen on establishing a plant here.
“They only want to open showrooms,” the minister said.
Still, Heavy Industry Secretary Kamran Rizvi added that everything is not confirmed as yet. “We will understand their true intentions when we open the application process,” he clarified.
Earlier, Tesla had expressed some interest in selling its vehicles in India. But the company had problems with India’s hefty import duties. Now, the government lowered the import duty to 15% in order to entice firms like Tesla and other similar firms.
Other auto firms like Hyundai, Mercedes-Benz, Kia, and Skoda are evincing keen interest to manufacture EVs in India under the new policy.
The government of India announced recently the Scheme to Promote Manufacturing of Electric Passenger Cars in India. The scheme is a part of India’s vision to combat pollution, develop the economy, and position the country as a leading center for manufacturing EVs.
According to this scheme:
- Firms may import costly electric vehicles at a reduced tax rate of 15% for 5 years.
- But they need to invest a minimum of Rs 4,150 crore in India.
- They have to initiate local production within three years.
Elon Musk’s father, Errol Musk, who is currently visiting India, said he wishes to see Teslas in India soon. But he confessed that he can’t speak officially as Tesla is a public company.
With this new policy, India is looking to invite the world’s best car manufacturers, generate employment, and position itself as a major player in the electric vehicle industry.
Tesla might begin with showrooms for the time being, but it is not known if and when they will manufacture cars in India.
