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It has come to light that the American company Tesla, which was once eager to enter the Indian market, is no longer interested in it. While there is talk of Tesla opening a factory in India's Maharashtra, it has been decided that it will not happen. Billionaire Elon Musk's electric vehicle (EV) maker, Tesla, will not open a manufacturing plant in India, India's heavy industries minister has confirmed.
Last year alone, India announced various incentive schemes targeting EV companies around the world . Now it has published a detailed guide for the promotion of EV manufacturing . According to Minister HD Kumaraswamy, Tesla will open two showrooms in India and will have a retail presence. It seems that Tesla's emphasis is on exporting vehicles to India instead of being a manufacturing plant. Times of India reports that since finding a location for the showroom, Tesla has also called for employment in more than 25 positions.
'Companies like Mercedes-Benz, Skoda-Volkswagen, Hyundai and Kia have shown interest in EV production in India, but we don't expect anything from Tesla,' Kumaraswamy said in a press conference, 'Tesla is not interested in manufacturing in India.' Another official told the Press Trust of India that although Tesla's representatives participated in the first round of discussions with India, they did not participate in the second and third rounds.
US President Donald Trump said last February that it would be "unfair" for America to open a factory for Tesla in India. The distance between Trump and Musk, who had a close relationship at that time, has now increased . Tesla has tried many times to enter the Indian market in the past. In 2023, Musk even responded that he was waiting for the right time to invest in India.
Now Tesla's plan is limited to exporting vehicles to India, according to Reuters. India's announcement that it will significantly reduce import duties for foreign auto makers that commit to investing in EV production is primarily aimed at attracting Tesla, according to a Reuters analysis. However, Tesla's CEO Musk had postponed the plan to invest in India last year. He has repeatedly expressed his displeasure with the high duty levied on imported vehicles in India.
Skoda Auto Volkswagen India has also responded that they are closely watching India's new EV policy and evaluating its impact. Tata Motors is leading the way in EV sales in India. Out of a total of 4.3 million cars sold in 2024, only 2.5 percent were EVs. The government aims to increase this percentage to 30 percent by 2030.
