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Saudi Gazette
2 days ago
- Automotive
- Saudi Gazette
Tesla is 'not interested' in producing cars in India, says minister
KOCHI — Elon Musk-owned electric vehicle (EV) giant Tesla is "not interested in manufacturing in India", the country's heavy industries minister has said. The remarks were made on Monday as the Indian government issued detailed guidelines for a scheme to promote EV manufacturing in the country. This is the first time that India has publicly admitted that it has not been able to lure investment dollars from Musk, even after unveiling incentives for global EV giants last March. Minister HD Kumaraswamy confirmed that Tesla would open two showrooms in India and have a retail presence. "Mercedes Benz, Skoda-Volkswagen, Hyundai and Kia have shown interest [in manufacturing electric cars in India]. Tesla - we are not expecting from them," Kumaraswamy said. Another official told the Press Trust of India news agency that a Tesla representative had participated in the first round of stakeholder discussions for the manufacturing scheme but "was not part of the second and third round".The comments come on the back of US President Donald Trump saying in February that it would be "unfair" for the US if Tesla built a factory in the years Tesla has had several rounds of negotiations to enter company's original plans to open a base were shelved in 2022 after the Indian government insisted that Tesla make cars locally. The carmaker had said it wanted to export to India first so that it could test 2023, Musk said he was "trying to figure out the right timing" to invest in the Indian met Prime Minister Narendra Modi earlier this year in Washington DC where the two discussed the "immense potential" for collaboration in technology and year India cut import taxes on EVs for global carmakers which committed to investing $500m (£369m) and starting local production within three years. This came after Musk complained that high import duties were preventing the carmaker from entering analysts say the Indian EV market may not be mature enough yet for Tesla to invest locally - EV sales still make up less than 3% of overall passenger vehicle sales in India, and locally made alternatives can cost half of what consumers will have to shell out for Tesla's base infrastructure and local road conditions could be further Tata Motors currently leads India's EV market with over 60% market share. MG Motors - jointly owned by India's JSW and a Chinese firm - is second at 22%.Globally, Tesla has been facing growing competition from Chinese players such as sales plummeted to their lowest level in three years in the first three months of 2025 after a backlash against Musk and his role in the Trump announced his departure from his government role last week. — BBC
Time of India
3 days ago
- Automotive
- Time of India
European, Korean majors keen to make EVs in India: HD Kumaraswamy
H D Kumaraswamy (File photo) NEW DELHI: Europe's Mercedes Benz, Skoda-Volkswagen (VW) and South Korea's Hyundai and Kia have shown interest to manufacture electric vehicles (EVs) in India, heavy industries minister H D Kumaraswamy said Monday. He added that India is likely to see only a "minor impact" from US plan to hike tariffs on steel and aluminium products, as India does not export steel "in a big way" to that country. The minister said these global car manufacturing majors have expressed interest during discussions between govt and industry regarding the 'Scheme to Promote Manufacturing of Electric Passenger Cars in India'. The window to apply under the scheme will open in a couple of weeks. Officials said successful applicants may roll out electric cars from their factories in India within two-to-three years. As per the guidelines, to encourage global manufacturers to invest under the scheme, the approved applicants will be allowed to import completely built-in units (CBUs) of electric cars with a minimum CIF (cost, insurance and freight) value of $35,000 at reduced customs duty of 15% for five years from the application approval date. The number of cars to be imported at lowered duty will be 8,000 units per annum. Approved applicants would be required to make a minimum investment of Rs 4,150 crore in line with the provisions of the scheme and will have to give bank guarantee for the same amount. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Economic Times
3 days ago
- Automotive
- Economic Times
Skoda, Mercedes, Kia, Hyundai keen to manufacture EVs in India: Kumaraswamy
Europe's Mercedes Benz, and Skoda-Volkswagen (VW), and South Korea's Hyundai and Kia, have shown interest to manufacture electric vehicles (EVs) in India, Union Heavy Industries Minister H D Kumaraswamy said Monday. Addressing journalists, he said application window for the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) will soon open, after which formal requests will be received. Responding to queries on Tesla's India plans, Kumaraswamy said the US-headquartered EV maker has not shown any interest to make in India.'Tesla only wants to open showrooms and sell imported cars,' he said. Also read: India to open flagship EV making policy to lure global giants Announcing the SPMEPCI guidelines, the minister said this aligns with India's emission reduction goals. 'The benefit is available only if the company agrees to invest and manufacture EVs on India,' he said the beneficiaries will need to start domestic production between three years.'This will enhance India's status as a global EV manufacturing hub…applications window for seeking sops to open shortly,' he officials aware of the developments said Skoda-Volkswagen (VW), and Mercedes Benz may shortly announce investment plans. The car makers are expected to seek sops under SPMEPCI. Also read: Tesla not interested in manufacturing in India, minister says This scheme is aimed at encouraging fresh investments from global manufacturers in EV passenger cars segment. To encourage the global manufacturers to invest under the scheme, approved applicants will be allowed to import Completely Built-in Units (CBUs) of electric four wheelers with a minimum import value of $ 35,000 at reduced customs duty of 15% for five years. Under the scheme guidelines, approved applicants would be required to make minimum investment of Rs. 4,150 crore in line with the provisions of the scheme. The maximum number of cars allowed to be imported at the reduced duty rate shall be capped at 8,000 units per year.
Time of India
3 days ago
- Automotive
- Time of India
Tesla unlikely to make in India, will focus only on imports: All you need to know
Electric vehicle maker Tesla , helmed by Elon Musk, is not keen on manufacturing in India despite the government wooing it aggressively through policy incentives. 'Tesla only wants to open showrooms and sell imported cars,' heavy industries minister H.D. Kumaraswamy said on Monday, adding that the American EV maker is unlikely to set up a production base in India anytime soon. Here is all you need to know: No plans to manufacture: Tesla has been eyeing India for years, recently finalising showroom space and posting job openings. However, the company appears focused on selling imported vehicles rather than committing to local production. Meanwhile, in February, US president Donald Trump said he believes any plans Tesla might have to open a factory in India would be "very unfair". New EV scheme: The government is gearing up to invite formal applications under its new flagship policy, Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI). The scheme promises a reduced import duty of 15% from the current 70% for automakers that invest at least $486 million in local manufacturing. Global carmakers showing interest: Kumaraswamy said automakers such as Mercedes-Benz, Skoda-Volkswagen, Hyundai and Kia have expressed interest in setting up EV production in India under the new scheme. Challenges for Tesla: High sticker prices, India's price-sensitive market and Tesla's direct-to-consumer sales model could complicate its entry. The Model 3, Tesla's cheapest car, would still land in luxury pricing territory after import duties. While Musk has hinted at a $24,000 'Model 2', there is little clarity on when or whether the model will be launched.
Hans India
3 days ago
- Automotive
- Hans India
EV booster: Mercedes-Benz, Volkswagen, Hyundai show interest in India manufacturing
New Delhi: Union Heavy Industries Minister H D Kumaraswamy said on Monday that Mercedes Benz, Skoda-Volkswagen (VW), Hyundai, and Kia have shown keen interest in manufacturing their electric vehicles (EVs) in India. The minister further said that the application window for the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) will open soon. On Elon Musk-run Tesla, the Union Minister said: "We are not actually expecting (manufacturing) from them as they are only to start showrooms. They are not interested in manufacturing in India." The new EV policy has allowed several concessions for companies that will invest in India and set up manufacturing units. The Centre has now notified guidelines to enable fresh investments from global manufacturers in the electric cars segment and promote India as a global manufacturing hub for e-vehicles. The approved applicants will be allowed to import completely built-in units (CBUs) of electric four-wheelers with a minimum CIF (cost insurance and freight value) of $35,000 at a reduced customs duty of 15 per cent for a period of 5 years from the date that the application is approved. Approved applicants would be required to make a minimum investment of Rs 4,150 crore in line with the provisions of the scheme. The maximum number of e-4Ws allowed to be imported at the reduced duty rate will be capped at 8,000 units per year. The carryover of unutilised annual import limits would be permitted. According to the notification, the maximum number of EVs to be imported under this scheme will be such that the maximum duty foregone per applicant will be limited to Rs 6,484 crore, or the committed investment of the applicant of a minimum of Rs 4,150 crore, whichever is lower. Meanwhile, the upcoming higher steel tariffs by US President Donald Trump will have a "minor" impact on India as the country does not export big to the US, Kumaraswamy said. Trump last week announced to double import tariffs on steel and aluminium from 25 per cent to 50 per cent, starting June 4. Speaking to reporters in the national capital, Kumaraswamy said: "Minor impact will be there as we are not exporting (to the US) in a big way."
