Tesla ‘Not Interested’ In Making Cars In India; Mercedes, VW, Hyundai, Kia Interested: Union Minister

Tesla 'Not Interested' In Making Cars In India; Mercedes, VW, Hyundai, Kia Interested: Union Minister

Last Updated:June 02, 2025, 14:43 IST

‘Tesla… They are more (interested) only to start showrooms. They are not interested to (start) manufacturing in India,’ says Union Minister H D Kumaraswamy.

Tesla’s representative only participated in the first round of stakeholder discussions for the Scheme to Promote Manufacturing of Electric Cars in India.

Elon Musk-owned Tesla is not interested in manufacturing electric cars in India, said Union Heavy Industries Minister H D Kumaraswamy on Monday, as per news agency PTI. He said the global EV giant is more interested only to start showrooms. However, he said Mercedes-Benz, Skoda-Volkswagen, Hyundai and Kia have shown interest in making EV cars in India.

“Tesla… They are more (interested) only to start showrooms. They are not interested to (start) manufacturing in India,” Kumaraswamy told reporters here.

He said this at a press conference to announce the unveiling of guidelines for the Scheme to Promote Manufacturing of Electric Cars in India.

“So far, they (Tesla) have not shown interest. Tesla representative only participated in the first round of stakeholder discussions for the Scheme to Promote Manufacturing of Electric Cars in India. The company’s representative was not part of the second and third round of the stakeholder deliberations,” PTI cited an official as saying.

Kumaraswamy said global automobile makers including Mercedes Benz, Skoda-Volkswagen, Hyundai and Kia have shown interest in manufacturing electric cars in India. These companies have expressed interest during the stakeholder discussions between the government and the industry regarding the ‘Scheme to Promote Manufacturing of Electric Passenger Cars in India’, the detailed guidelines for which were unveiled by the minister.

While the scheme was notified on March 15 last year, its guidelines were issued on Monday.

US President Donald Trump has said that if Tesla were to build a factory in India to circumvent that country’s tariffs, it would be “unfair” to the US.

Tesla CEO billionaire Elon Musk had said in April last year that his visit to India has been delayed due to the company’s heavy obligations.

Meanwhile, Elon Musk’s father, Errol Musk, landed in India on Sunday to visit the Ayodhya Ram temple. During his visit to the country, Errol is also scheduled to attend various business-related meetings. Errol is on a five-day trip to India, starting from June 1 till June 6.

Recently, US President Trump also warned iPhone maker Apple against manufacturing in India threatening with 25 per cent tariffs. On May 23, in a post on Truth Social, he said iPhones sold in the United States should be manufactured domestically or face a steep 25 per cent tariff if built in India or anyplace else.

It came a week after a similar statement by the US president, warning Apple CEO Tim Cook against expanding Apple’s manufacturing footprint in India, unless it is specifically to serve the Indian market.

Apple sells over 60 million iPhones in the US annually with roughly 80% of them made in China currently.

Last week, during a business event in Doha, Qatar, on May 15, Trump said he had a direct conversation with Apple CEO Tim Cook, advising him against expanding Apple’s manufacturing footprint in India, unless it is specifically to serve the Indian market.

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Mohammad Haris

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso…Read More

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso… Read More

News business Tesla ‘Not Interested’ In Manufacturing Cars In India, To Set Up Only Showrooms: Union Minister

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