Elon Musk's Tesla only eyes Indian sales; has no plan to set up manufacturing unit, says HD Kumaraswamy

Union Minister for Heavy Industries and Steel HD Kumaraswamy on Tuesday said that Elon Musk-owned Tesla has so far shown interest only in opening a car showroom in India, referring to speculations about the company's plan to set up a manufacturing unit in the country.

Tesla only wants to sell cars

"Tesla is only interested in opening a showroom till now. They want to sell their car in India. There is no further development about Tesla," the Union minister told ANI during the launch of a portal that allows global electric vehicle (EV) makers to submit their applications to build EVs in India.

The ministry said that it has approved a forward-looking scheme to promote the domestic manufacture of passenger cars, with a special focus on electric vehicles, ANI reported.

India backs domestic EV production 

The scheme is launched by the Ministry of Heavy Industries (MHI). It is expected to attract investments from foreign EV manufacturers and turn India into a manufacturing hub for e-vehicles.

The scheme aims to put India on the global map for the manufacturing of EVs, generate employment, and achieve the goal of "Make in India."

All about the scheme 

Once approved by the government, the applicants will be allowed to import Completely Built-in Units (CBUs) of e-4W with a minimum CIF (total cost including freight and insurance) value of $35,000. 

The imports will be brought with reduced customs duty of 15 per cent for a period of five years from the application approval date, thereby encouraging the global manufacturers to invest under the scheme.

Approved applicants would also be required to make a minimum investment of ₹4,150 crore in line with the provisions of the scheme, the news agency reported. 

Application portal to remain open until October 21

The minimum investment requirement of ₹4,150 crore will provide an enabling policy environment for leading global and domestic players to create long-term manufacturing footprints in the country.

According to the ministry, the application portal would be open for applications from 24 June 2025, 10.30 am and will remain open until 21 October 2025 till 6:00 pm.