Elon Musk-owned electrical car (EV) large Tesla is “not thinking about manufacturing in India”, the nation’s heavy industries minister has mentioned.
The remarks had been made on Monday because the Indian authorities issued detailed pointers for a scheme to advertise EV manufacturing within the nation.
That is the primary time that India has publicly admitted that it has not been in a position to lure funding {dollars} from Musk, even after unveiling incentives for international EV giants final March.
Minister HD Kumaraswamy confirmed that Tesla would open two showrooms in India and have a retail presence.
“Mercedes Benz, Skoda-Volkswagen, Hyundai and Kia have proven curiosity [in manufacturing electric cars in India]. Tesla – we aren’t anticipating from them,” Kumaraswamy mentioned.
One other official informed the Press Belief of India information company {that a} Tesla consultant had participated within the first spherical of stakeholder discussions for the manufacturing scheme however “was not a part of the second and third spherical”.
The feedback come on the again of US President Donald Trump saying in February that it could be “unfair” for the US if Tesla constructed a manufacturing unit in India.
Over time Tesla has had a number of rounds of negotiations to enter India.
The corporate’s unique plans to open a base had been shelved in 2022 after the Indian authorities insisted that Tesla make vehicles domestically. The carmaker had mentioned it wished to export to India first in order that it may take a look at demand.
In 2023, Musk said he was “attempting to determine the best timing” to put money into the Indian market.
Musk met Prime Minister Narendra Modi earlier this yr in Washington DC the place the 2 mentioned the “immense potential” for collaboration in expertise and innovation.
Final yr India lower import taxes on EVs for international carmakers which dedicated to investing $500m (£369m) and beginning native manufacturing inside three years. This got here after Musk complained that top import duties had been stopping the carmaker from coming into India.
However analysts say the Indian EV market might not be mature sufficient but for Tesla to speculate domestically – EV gross sales nonetheless make up lower than 3% of total passenger car gross sales in India, and domestically made options can price half of what shoppers must shell out for Tesla’s base mannequin.
Charging infrastructure and native street situations might be additional deterrents.
India’s Tata Motors at present leads India’s EV market with over 60% market share. MG Motors – collectively owned by India’s JSW and a Chinese language agency – is second at 22%.
Globally, Tesla has been dealing with rising competitors from Chinese language gamers reminiscent of BYD.
Its gross sales plummeted to their lowest level in three years within the first three months of 2025 after a backlash towards Musk and his position within the Trump administration.
Musk introduced his departure from his authorities position final week.
