'They're Not Interested...' - Union Minister HD Kumaraswamy Says Tesla Snubs India, European Carmakers Step In

Despite high hopes surrounding Tesla’s potential entry into India’s electric vehicle (EV) landscape, Union Minister for Heavy Industries H.D. Kumaraswamy has ruled out the possibility of the American EV giant setting up manufacturing operations in the country in the near term.

“Tesla only wants to open showrooms and sell its cars here. They are not interested in setting up a manufacturing facility,” Kumaraswamy said during an interaction with the media, indicating that the Elon Musk-led company has shown no concrete interest in establishing a production base in India. His remarks come amid rising anticipation following Tesla’s recent moves to lease retail space in Mumbai and Delhi.

Earlier this year, Tesla secured premium commercial spaces in Mumbai’s Bandra Kurla Complex (BKC) and Delhi’s Aerocity for its first showrooms in the country. The company has also started hiring for key roles, including sales and service positions, signalling an imminent launch of direct-to-consumer sales of imported vehicles.

Also Read: Tesla India Operations To Begin Within 3–4 Months; May Allocate 10,000 Cars in Phase 1 – Details | Republic World

EV Policy Tailor-Made for Tesla

India introduced a new EV policy in March 2024 aimed at attracting global automakers to manufacture locally. The policy offers steep import duty reductions—from 70% to 15%—on electric cars, provided manufacturers commit to investing at least $486 million (Rs 4,000 crore) and establish production facilities within three years.

In addition, automakers must meet phased localization targets, starting with 25% local content within three years and scaling up to 50% in five years.

Kumaraswamy clarified that Tesla has yet to signal any intention to meet these investment or localization criteria. “They are not talking about manufacturing at all,” he reiterated, emphasizing that Tesla’s current involvement appears limited to a retail footprint.

European Carmakers Eye India for EV Production

In contrast, several global players have expressed active interest in entering India’s EV space through local manufacturing. Companies such as Mercedes-Benz, Skoda-Volkswagen, Hyundai, and Kia are reportedly preparing proposals under the new policy framework, according to media reports.

The Ministry of Heavy Industries is expected to open the application window for the EV manufacturing scheme—formally known as the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI)—in the coming weeks. Applications will be accepted through March 2026.

Meanwhile, government officials remain cautiously optimistic that Tesla’s stance could evolve once the formal application process is underway. “Their real intent will become clearer only when they formally engage with the policy,” a senior ministry official said on condition of anonymity.

India’s EV market is projected to expand rapidly over the next decade, and policymakers view domestic manufacturing as a strategic imperative—to reduce import dependency, boost self-reliance, and generate employment. While Tesla’s current absence on the production front may be seen as a short-term setback, the government appears determined to push forward—with or without the American EV pioneer