By Kavita Mistry 
Union Heavy Industries Minister H. D. Kumaraswamy stated that Tesla has no interest in producing electric cars in India.
In India, Tesla intends to open two showrooms but no production plants.
International EV manufacturers have expressed interest in the Indian government’s flagship EV manufacturing program, including Mercedes-Benz, Volkswagen-Koda, Hyundai, and Kia.
Tesla Rules Out Manufacturing in India, Plans to Open Two Showrooms Instead: Union Heavy Industries Minister
Kumaraswamy confirmed: “Mercedes-Benz, Volkswagen-Škoda, Hyundai and Kia — all these companies have already shown interest. Tesla, we are actually not expecting from them.”
US President Donald Trump criticized Tesla’s expansion in India, stating, “Now, if (Tesla CEO Elon Musk) built the factory in India, that’s okay, but that’s unfair to us. It’s very unfair.”
Trump expressed similar concerns about Apple’s expansion in India.
At first, the plan was thought to be intended to draw in Tesla, which had previously voiced dissatisfaction over India’s exorbitant import taxes on automobiles, which could reach 110%.
Elon Musk was supposed to travel to India and pledge a $2 billion investment for a manufacturing facility after the plan was revealed in March 2024.
Later, Musk canceled his trip, claiming he had “very heavy Tesla obligations.”
Musk traveled to China, Tesla’s second-largest market, a few days after calling off the India trip.
Tesla announced 13 job openings in India in February, including positions like store manager and customer engagement manager, following Prime Minister Narendra Modi’s meeting with Musk in Washington.
Chinese EV producers like BYD are becoming a bigger threat to Tesla as it assesses its India strategy.
The growth of EV sales worldwide has slowed, which puts Tesla under more competitive pressure.
Tesla Starts Refunding Indians Who Paid Advance
While sparking speculation, Tesla Inc.’s India office appears to be refunding early bookers of its Model 3.
In the meantime there are increasing speculations that the American electric vehicle maker is nearing a rollout in the world’s third-largest automobile market.
This strategic move appears to have heightened rumours that the electric vehicle behemoth is preparing for a big market entry into the most populous country in the world, rather than indicating a retreat.