Lagatar24 Desk
New Delhi: While the Indian government is aggressively promoting electric vehicle (EV) manufacturing, uncertainty remains over Elon Musk’s Tesla. Union Minister for Heavy Industries and Steel H.D. Kumaraswamy stated that Tesla only seems interested in opening two showrooms in India and is not showing seriousness about setting up manufacturing facilities.
Other Global Auto Giants Show Interest
Global automakers like Mercedes-Benz, Skoda-Volkswagen, Hyundai, and Kia have expressed interest in investing in EV manufacturing in India and have responded positively to the government’s new policy.
India’s New EV Policy
Under the new EV policy, automakers can import up to 8,000 electric vehicles annually at a reduced import duty of 15% — significantly lower than the usual 70% — provided they invest ₹4,150 crore in India. They must also begin local production within three years and ensure at least 50% localization of components within five years.
Tesla’s Current Activity in India
Showrooms in Mumbai and Delhi: Tesla has secured a site in Mumbai’s BKC for a showroom, leased for five years at ₹32 lakh per month. Local Hiring: The company has hired over 25 employees in India and is expected to begin sales soon. Missed Government Meetings: While Tesla attended the first meeting with government officials, it skipped the next two key discussions, according to the ministry.
Trump’s Warning on Tesla’s Trade Plans
Meanwhile, former U.S. President Donald Trump has issued a warning regarding Tesla’s proposed India strategy. He said Tesla can set up factories in India, but if it wants to sell its products in the U.S. without paying tariffs, “that will not be allowed under any circumstances.”
