Elon Musk-owned electrical car (EV) big Tesla is “not fascinated about manufacturing in India”, the nation’s heavy industries minister has stated.
The remarks have been made on Monday because the Indian authorities issued detailed tips 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 capable of lure funding {dollars} from Musk, even after unveiling incentives for world 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’re not anticipating from them,” Kumaraswamy stated.
One other official instructed 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 will be “unfair” for the US if Tesla constructed a manufacturing unit in India.
Through the years Tesla has had a number of rounds of negotiations to enter India.
The corporate’s authentic plans to open a base have been shelved in 2022 after the Indian authorities insisted that Tesla make vehicles domestically. The carmaker had stated it wished to export to India first in order that it might check demand.
In 2023, Musk said he was “making an attempt to determine the suitable 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 world carmakers which dedicated to investing $500m (£369m) and beginning native manufacturing inside three years. This got here after Musk complained that top import duties have 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 alternate options can price half of what customers must shell out for Tesla’s base mannequin.
Charging infrastructure and native street situations may very well 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 similar to 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.
