Elon Musk's Tesla 'not interested' to produce, manufacture in India, says Union minister HD Kumaraswamy

As Tesla mulls over its decision, the union minister added that companies such as Hyundai, Kia, Skoda and more have expressed interest to manufacture in India.

Published on: Jun 2, 2025, 15:36:07 IST

By HT News Desk

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Elon Musk-owned Tesla is reportedly not keen on setting up manufacturing and production units in India. As per the statement from Union minister for heavy industries HD Kumaraswamy, Tesla is only interested in expanding its showrooms in India.

As per the union minister, Elon Musk's Tesla is not keen on having production and manufacturing units in India (Unsplash)

"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 further added that despite the disinterest from Tesla, several international companies such as Hyundai, Mercedes Benz, Skoda and Kia have shown interest to set up manufacturing units in India based on the new policy for electric vehicles.

Under the new EV policy, companies are allowed a 15 pe rcent duty if the company invests 500 million US dollars to set up a manufacturing plant in India. The companies will also be required to source 25 per cent of the parts from India for the first three years, and then expand to 50 per cent by the fifth year.

Speaking to reporters, the union minister added that the application window for the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI), will be open soon.

Trump's tariffs behind Tesla's pull back?

Amid his tariff spree, US President Donald Trump stated that Tesla's plans of opening a factory in India would be "very unfair."

A similar warning for given to Apple CEO Tim Cook after he announced that the company is considering shifting its production to India in view of the high tariffs against China.

For the past few years, Tesla has been considering setting up manufacturing and production in India. Elon Musk had also stated that India's high import duties were a key barrier halting Tesla's expansion in the country.

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HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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