Elon Musk-owned electrical car (EV) large Tesla is “not interested in 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.
This is the primary time that India has publicly admitted that it has not been capable of 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 shown interest [in manufacturing electric cars in India]. Tesla – we are not expecting from them,” Kumaraswamy mentioned.
Another official instructed the Press Trust of India information company {that a} Tesla consultant had participated within the first spherical of stakeholder discussions for the manufacturing scheme however “was not part of the second and third round”.
The feedback come on the again of US President Donald Trump saying in February that it might be “unfair” for the US if Tesla constructed a manufacturing unit in India.
Over the years Tesla has had a number of rounds of negotiations to enter India.
The firm’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 check demand.
In 2023, Musk mentioned he was “trying to figure out the right 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 know-how and innovation.
Last yr India reduce 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 prime import duties had been stopping the carmaker from coming into India.
But analysts say the Indian EV market will not be mature sufficient but for Tesla to take a position domestically – EV gross sales nonetheless make up lower than 3% of general passenger car gross sales in India, and domestically made alternate options can value half of what shoppers should shell out for Tesla’s base mannequin.
Charging infrastructure and native street situations may very well be additional deterrents.
India’s Tata Motors at the moment leads India’s EV market with over 60% market share. MG Motors – collectively owned by India’s JSW and a Chinese agency – is second at 22%.
Globally, Tesla has been going through rising competitors from Chinese gamers resembling BYD.
Its gross sales plummeted to their lowest stage in three years within the first three months of 2025 after a backlash in opposition to Musk and his function within the Trump administration.
Musk introduced his departure from his authorities function final week.
https://www.bbc.com/news/articles/ce9vm07k0y7o