Elon Musk-led electric vehicle giant Tesla is exploring entry into the Indian market but currently has no plans to establish a manufacturing facility in the country, according to Union Minister of Heavy Industries, HD Kumaraswamy.
“Tesla is not showing any manufacturing interest in India. They’re only considering beginning operations through showrooms,” Kumaraswamy said while launching the guidelines for a central government scheme aimed at encouraging domestic EV production.
He added that the government is focusing on attracting companies like Mercedes Benz, Hyundai, Kia, and Volkswagen — all of whom have expressed interest in setting up manufacturing operations in India — under the “Scheme to Promote Manufacturing of Electric Passenger Cars in India.”
Approved by the Centre in March last year, the scheme is designed to boost EV manufacturing in the country. It allows global players to import electric four-wheelers (E4Ws) at a reduced customs duty of 15% for five years, provided they commit to investing at least INR 4,150 crore in India.
As per the scheme, manufacturers can import fully built E4Ws with a minimum cost, insurance, and freight (CIF) value of $35,000. The number of such vehicles allowed at the concessional duty rate is capped at 8,000 units annually.
