His statement comes as India prepares to open applications for its new electric vehicle (EV) policy aimed at attracting global automakers to the country.
#FromPTI | Don’t expect #Tesla to manufacture here, says HD Kumaraswamy, Heavy Industries Minister pic.twitter.com/G4KvCOewQu
— CNBC-TV18 (@CNBCTV18Live) June 2, 2025
The policy, announced in March 2024, offers a reduced import duty of 15% on electric cars priced at $35,000 or more, provided the manufacturer invests at least ₹41.5 billion (about $500 million) to set up a local factory within three years.
Under this scheme, companies will be allowed to import up to 8,000 EVs per year at the lower duty rate. The policy is part of India’s broader effort to attract companies like Elon Musk-led Tesla, which has long criticised India’s high import duties.
Despite Tesla recently securing showroom space and posting over two dozen job listings in India, Minister Kumaraswamy stated that manufacturing in the country is not on the horizon for the company at this time.
In February, former US President Donald Trump had remarked that any move by Tesla to set up a factory in India would be “very unfair.”
India remains a growing market for electric vehicles, even as demand slows in other parts of the world. The new policy is expected to increase competition for local manufacturers that currently dominate the EV space.
(Edited by : Vivek Dubey)
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