Tesla not interested in manufacturing cars in India, but THESE four companies are — check details

Tesla, the Elon Musk-led electric vehicle (EV) manufacturer, is not interested in manufacturing its cars in India, Union Minister of Heavy Industries HD Kumaraswamy said on Monday, June 2, according to a PTI report.

The EV giant is looking to sell its cars in the country but is not willing to manufacture them in India, the minister was quoted as saying in the report. 

“Tesla... they are more (interested) to start showrooms. They are not interested to (start) manufacturing in India,” HD Kumaraswamy told the media during a press conference.

The minister announced the new guidelines for a scheme to promote electric vehicle manufacturing in India at the event.

US President Donald Trump called out Tesla's move, and said that if the EV maker decides to build a factory in India, just to evade the tariffs of the nation, then it will be “unfair” to the US-based manufacturers. 

“So far they (Tesla) have not shown interest. A Tesla representative only participated in the first round of stakeholder discussions for the scheme to promote the manufacturing of electric cars in India. The company's representative was not part of the second and third round of the stakeholder deliberations,” an official aware of the development told the news agency.

4 other foreign automakers seek to build EVs in India

While Tesla seems to be reluctant to set up manufacturing units in India, companies such as Mercedes-Benz, Skoda-Volkswagen, Hyundai and Kia have shown interest in building electric cars in India.

“Mercedes Benz, Volkswagen, Skoda, Hyundai, Kia, all these companies have already shown interest,” Kumaraswamy said. 

The interest from these global auto giants comes amid ongoing discussions between the government and the industry on the scheme to promote EV manufacturing in India.

The window for companies to apply for their India entry will open in a couple of weeks, and the government awaits to see which companies actually apply under the scheme, reported the news agency, citing an official aware of the development.

The approved applicants would be required to make a minimum investment of ₹4,150 crore in India, in line with the provisions of the scheme.

The Ministry of Heavy Industries will have the right to open the application window as and when required till March 15, 2026, according to the report.