Tesla Decides Not to Produce Cars in India
(MENAFN) Elon Musk’s electric vehicle powerhouse Tesla has decided against establishing manufacturing operations in India, according to the country’s minister for heavy industries.
The statement was made Monday, coinciding with the Indian government's release of comprehensive guidelines aimed at boosting domestic EV production through a new incentive scheme.
This marks the first official acknowledgment by New Delhi that its efforts to attract investment from Tesla have fallen short, despite rolling out incentives last March specifically tailored to entice global EV manufacturers.
Minister HD Kumaraswamy stated that while Tesla plans to establish two showrooms and maintain a retail footprint in India, it has no plans for local production.
"Mercedes Benz, Skoda-Volkswagen, Hyundai and Kia have shown interest [in manufacturing electric cars in India]. Tesla - we are not expecting from them," Kumaraswamy said.
An unnamed official told the Press Trust of India that while a Tesla representative did take part in the initial stakeholder meeting for the manufacturing scheme, the company " was not part of the second and third round" of discussions.
The comments come amid renewed political scrutiny from Washington. In February, U.S. President Donald Trump remarked it would be "unfair" to the United States if Tesla were to establish a production plant in India.
Tesla’s potential entry into the Indian market has seen multiple rounds of negotiations over the years. The company previously abandoned plans to build a manufacturing hub in 2022 after India insisted vehicles be made locally—a condition Tesla resisted, preferring to test the market by exporting vehicles first.
In 2023, Musk signaled ongoing interest, stating he was "trying to figure out the right timing" for investment in India.
Earlier this year, Musk met with Prime Minister Narendra Modi in Washington, D.C., where the two reportedly discussed the "immense potential" for technological and innovation-driven collaboration.
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