Tesla not interested in manufacturing in India, says Kumaraswamy; government issues guidelines for domestic EV manufacturing

New Delhi [India], June 2 (ANI): Tesla, the Elon Musk-owned electric vehicle giant, is not interested in manufacturing in India and is keen on opening showrooms, Union Minister for Heavy Industries HD Kumaraswamy said on Monday.
The remarks came amid government's push to promote domestic manufacture of passenger cars, with a special focus on electric vehicles (EVs).
"Tesla...they are only to start showrooms. They are not interested in manufacturing in India," the minister said.
Heavy Industry Secretary Kamran Rizvi, however, added "the real intent we'll know when we open the application".
"If the company still feels like investing. What the minister sir is telling is about what people...they come and told informally," he said.
The minister added that many European companies like Hyundai, Mercedes Benz, Skoda and Kia have shown interest in manufacturing units in India under the new EV policy.
Earlier, there were reports that Tesla was interested in importing Tesla car into India and subsequently sell it through their showrooms in India.
Tesla boss Musk had in the past indicated that he was interested in investing in India, but "high import duty" structures were a bone of contention.
Tesla's intention to come into India had intensified after India announced its new EV policy, under which import duty was reduced to 15 per cent and many incentives were provided for setting up manufacturing plant in India.
Meanwhile, Elon Musk's father Servotec's Errol Musk, who is in India, appeared keen on Tesla's presence in the country.
"That is something that I have to be careful not to say too much about. Tesla is a public company. It's not ours...When you look at India and the population, the kind of people you've got here, the energy and everything and when I hear that, with great respect, BYD and various others are coming in, and Tatas and Mahindra are making great cars, I'm very inclined to say, wait, why aren't we having Teslas here. But I can't say too much. That's just a personal point of view," he said.
He was answering a query about plans for Tesla's presence in India.
The central government on Monday notified guidelines for the Scheme to Promote Manufacturing of Electric Passenger Cars in India.
The central government approved a forward-looking scheme to promote the domestic manufacture of passenger cars, with a special focus on electric vehicles (EVs).
The initiative is aligned with India's national goals of achieving net zero by 2070, fostering sustainable mobility, driving economic growth, and reducing environmental impact. It is designed to firmly establish India as a premier global destination for automotive manufacturing and innovation.
Ministry of Heavy Industries (MHI) has issued a notification regarding detailed guidelines for the "Scheme to Promote Manufacturing of Electric Passenger Cars in India" (SPMEPCI / the Scheme)MHI had issued the Scheme notification on March 15 2024.
The Department of Revenue also issued the notification on March 15, 2024 for reduced import duties in line with the provisions of the Scheme.
The Notice for inviting applications under the Scheme is proposed to be notified shortly, whereby the prospective applicants would be able to submit online applications.
The scheme shall help to attract investments from global EV manufacturers and promote India as a manufacturing destination for e-vehicles. The Scheme will also help put India on the global map for manufacturing of EVs, generate employment and achieve the goal of "Make in India".
To encourage the global manufacturers to invest under the Scheme, the approved applicants will be allowed to import Completely Built-in Units (CBUs) of e-4W with a minimum CIF value of USD 35,000 at reduced customs duty of 15% for a period of 5 years from the Application Approval Date.
Approved applicants would be required to make minimum investment of Rs. 4,150 crore in line with the provisions of the scheme. (ANI)