Tesla Is 'not Interested' In Producing Cars In India - Minister

Elon Musk-owned electrical conveyance (EV) elephantine Tesla is "not willing successful manufacturing successful India", nan country's dense industries curate has said.

The remarks were made connected Monday arsenic nan Indian authorities issued elaborate guidelines for a strategy to beforehand EV manufacturing successful nan country.

This is nan first clip that India has publically admitted that it has not been capable to lure finance dollars from Musk, moreover aft unveiling incentives for world EV giants past March.

Minister HD Kumaraswamy confirmed that Tesla would unfastened 2 showrooms successful India and person a unit presence.

"Mercedes Benz, Skoda-Volkswagen, Hyundai and Kia person shown liking [in manufacturing electrical cars successful India]. Tesla - we are not expecting from them," Kumaraswamy said.

Another charismatic told nan Press Trust of India news agency that a Tesla typical had participated successful nan first information of stakeholder discussions for nan manufacturing strategy but "was not portion of nan 2nd and 3rd round".

The comments travel connected nan backmost of US President Donald Trump saying successful February that it would beryllium "unfair" for nan US if Tesla built a mill successful India.

Over nan years Tesla has had respective rounds of negotiations to participate India.

• Can Tesla's EVs triumph complete India's price-conscious buyers?

The company's original plans to unfastened a guidelines were shelved successful 2022 aft nan Indian authorities insisted that Tesla make cars locally. The carmaker had said it wanted to export to India first truthful that it could trial demand.

In 2023, Musk said he was "trying to fig retired nan correct timing" to put successful nan Indian market.

Musk met Prime Minister Narendra Modi earlier this twelvemonth successful Washington DC wherever nan 2 discussed nan "immense potential" for collaboration successful exertion and innovation.

Last twelvemonth India trim import taxes connected EVs for world carmakers which committed to investing $500m (£369m) and starting section accumulation wrong 3 years. This came aft Musk complained that precocious import duties were preventing nan carmaker from entering India.

But analysts opportunity nan Indian EV marketplace whitethorn not beryllium mature capable yet for Tesla to put locally - EV income still dress up little than 3% of wide rider conveyance income successful India, and locally made alternatives tin costs half of what consumers will person to ammunition retired for Tesla's guidelines model.

Charging infrastructure and section roadworthy conditions could beryllium further deterrents.

India's Tata Motors presently leads India's EV marketplace pinch complete 60% marketplace share. MG Motors - jointly owned by India's JSW and a Chinese patient - is 2nd astatine 22%.

Globally, Tesla has been facing increasing title from Chinese players specified arsenic BYD.

Its income plummeted to their lowest level in 3 years successful nan first 3 months of 2025 aft a backlash against Musk and his domiciled successful nan Trump administration.

Musk announced his departure from his authorities domiciled past week.