Tesla Not Interested in Manufacturing in India, Mercedes, Hyundai, VW Show Interest Under New EV Scheme: Minister
New Delhi, 02 June, 2025
Global electric vehicle giant Tesla is not keen on manufacturing cars in India but is interested in opening showrooms in the country, Union Heavy Industries Minister H.D. Kumaraswamy said on Monday.
"Tesla, we are not actually expected from them, they are only to start showrooms. They are not interested in manufacturing in India," Mr. Kumaraswamy told reporters. The Minister made the remarks at a press conference to announce the unveiling of guidelines for the Scheme to Promote Manufacturing of Electric Cars in India.
Under the new EV policy, companies that invest 500 million US dollars to establish a manufacturing plant in India will be eligible for a reduced import duty of 15 percent. Additionally, they must source 25 percent of components from within India during the first three years, increasing to 50 percent by the fifth year.
The Union Minister further stated that the application window for the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) will be opened soon.
The minister also said that global automobile makers such as Mercedes Benz, Skoda-Volkswagen, Hyundai and Kia had shown interest in manufacturing electric cars in India.
These companies expressed their interest during stakeholder discussions held between the government and the industry on the ‘Scheme to Promote Manufacturing of Electric Passenger Cars in India’. The detailed guidelines for the scheme, which was originally notified on March 15 last year, were officially released on Monday.
