Tesla is 'not interested' in producing cars in India - minister

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

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

This is the archetypal clip that India has publically admitted that it has not been capable to lure concern dollars from Musk, adjacent aft unveiling incentives for planetary EV giants past March.

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

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

Another authoritative told the Press Trust of India quality bureau that a Tesla typical had participated successful the archetypal circular of stakeholder discussions for the manufacturing strategy but "was not portion of the 2nd and 3rd round".

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

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

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

The company's archetypal plans to unfastened a basal were shelved successful 2022 aft the Indian authorities insisted that Tesla marque cars locally. The carmaker had said it wanted to export to India archetypal truthful that it could trial demand.

In 2023, Musk said helium was "trying to fig retired the close timing" to put successful the Indian market.

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

Last twelvemonth India chopped import taxes connected EVs for planetary 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 the carmaker from entering India.

But analysts accidental the Indian EV marketplace whitethorn not beryllium mature capable yet for Tesla to put locally - EV income inactive marque up little than 3% of wide rider conveyance income successful India, and locally made alternatives tin outgo fractional of what consumers volition person to ammunition retired for Tesla's basal model.

Charging infrastructure and section roadworthy conditions could beryllium further deterrents.

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

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

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

Musk announced his departure from his authorities relation past week.