Elon Musk’s company Tesla is reportedly not interested in setting up production and manufacturing units in India. According to Union Heavy Industries Minister HD Kumaraswamy, Tesla is only focusing on increasing the number of its showrooms in India.
“Tesla, we are not actually expected from them, they are only to start showrooms. They are not interested in manufacturing in India,” the minister was quoted as saying by news agency ANI.
Kumaraswamy also said that despite Tesla’s reluctance, several international companies such as Hyundai, Mercedes-Benz, Skoda and Kia are interested in setting up manufacturing units here under India’s new electric vehicle policy.
Under the new EV policy, if a company invests USD 500 million to set up a manufacturing plant in India, it will get a 15 per cent custom duty exemption. Apart from this, companies will have to buy 25 percent of parts from India in the first three years, which will have to be increased to 50 per cent by the fifth year.
Speaking to the media, the Union Minister said that applications for the Scheme for Promoting Manufacturing of Electric Passenger Cars in India (SPMEPCI) will start soon.
Did Trump’s Tariffs Make Tesla Back Out Of The Plan?
Under his tariff policies, US President Donald Trump had said that Tesla’s plan to open a factory in India would be “very unfair”.
Similarly, Apple CEO Tim Cook had also received a warning when he considered shifting production to India due to increased tariffs against China.
Tesla has been considering starting manufacturing and production in India for several years. Elon Musk had also said that India’s high import duties are the biggest challenge to Tesla’s expansion.
