Tesla shows no interest in India manufacturing

New Delhi

Union Heavy Industries Minister H.D. Kumaraswamy on Monday (June 2, 2025) stated that Tesla is not interested in manufacturing electric cars in India but is keen to establish showrooms across the country. The global electric vehicle (EV) giant’s reluctance to invest in local production contrasts with the interest shown by other major automobile manufacturers.

Speaking at a press conference announcing the guidelines for the Scheme to Promote Manufacturing of Electric Cars in India, Kumaraswamy said Tesla had only participated in the first round of stakeholder discussions but skipped subsequent rounds. An official confirmed that Tesla’s representative was absent from the second and third rounds of consultations.

U.S. President Donald Trump has also commented on Tesla’s plans, describing the idea of Tesla building a factory in India to bypass tariffs as “unfair” to the U.S.

Meanwhile, other global carmakers such as Mercedes Benz, Volkswagen-Skoda, Hyundai, and Kia have expressed genuine interest in manufacturing electric vehicles under the government’s scheme. The guidelines for this scheme, which was notified in March last year, were unveiled on Monday, with applications expected to open in the coming weeks.

Approved manufacturers will be required to invest a minimum of ₹4,150 crore to qualify for benefits under the scheme.  Tesla CEO Elon Musk had previously delayed his India visit in April 2024, citing heavy company commitments, which also reflects the company’s cautious approach toward expanding its manufacturing footprint in India.