Tesla not interested in manufacturing in India

TAM Desk ||

Elon Musk’s Tesla is said not to be interested in manufacturing in India, which rolled out a lucrative electric vehicle policy last year to attract global auto giants to one of the biggest car markets.

“Tesla only wants to open showrooms and sell imported cars,” said Heavy Industries Minister Kumaraswamy on Monday. The EV giant is unlikely to manufacture vehicles in the country anytime soon, Economic Times quoted him as saying.

Kumaraswamy also said India will soon invite applications under its electric vehicle (EV) manufacturing policy. The minister also said Europe’s Mercedes Benz, and Skoda-Volkswagen (VW), South Korean Hyundai, and Kia, have shown interest to manufacture EVs in India.

Speaking to journalists, he said the application window for the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) will open soon. After that, the government will start accepting formal applications.

The government has announced a scheme that includes significant import tax cuts for foreign automakers that commit to investing in manufacturing electric cars in the country. Under a rewamped scheme, companies will be allowed to import a limited number of electric cars at a lower import duty of 15% versus the current 70% duty if they commit to investing $486 million to build EVs in the country, the Ministry of Heavy Industries said in a statement.

Meanwhile, in February, U.S. President Donald Trump said he believes any plans Tesla might have to open a factory in India would be “very unfair.”