It has come to light that American company Tesla, which was once keen to enter the Indian market, is no longer interested. 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 industry minister has confirmed.

Just last year, India announced various incentive schemes targeting EV companies around the world. Now it has published a detailed guide for promoting 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 not on the manufacturing plant, but on the export of cars in India. Since finding a location for the showroom, Tesla has also called for employment in more than 25 positions, according to the Times of India.

"Companies like Mercedes-Benz, Skoda-Volkswagen, Hyundai and Kia have shown interest in EV production in India, but we have no expectations from Tesla," Kumaraswamy said in a press conference, "Tesla is not interested in manufacturing in India."

US President Donald Trump said last February that it would be "unfair" for the US to open a factory for Tesla in India. The distance between Trump and Musk, who had a very close relationship at that time, has now increased. Tesla has tried several 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 plans are limited to exporting cars to India, according to Reuters. India's announcement that it will significantly reduce import duties for foreign automakers that commit to investing in EV production is primarily aimed at attracting Tesla, according to a Reuters analysis. However, Tesla CEO Musk had suspended plans to invest in India last year. He has repeatedly expressed his displeasure over the high duty levied on imported vehicles in India.

Volkswagen India has also responded that they are closely watching India's new EV policy and assessing its impact. Tata Motors is the leader in EV sales in India. Of the 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.

Musk's criticism of Trump's tax and spending bill

Billionaire Elon Musk has strongly criticized US President Donald Trump's tax and spending bill. He also commented on this as a 'disgusting' step.

This law was passed in the House of Representatives (the lower house of the US Parliament). The law also includes trillions of dollars in tax cuts, increased defense spending, and even allowed the US government to take on more debt.

Musk wrote on his social network X on Tuesday, “The people who voted for this. Shame on them. Tech billionaire Musk abruptly left the administration last week after 129 days at the Department of Government Efficiency (DOGI). The comments marked Elon Musk's first public disagreement with Trump since leaving the government. Earlier, he had described the plan as disappointing.