New Delhi [India], June 2 (ANI): Elon Musk-owned electric car manufacturer Tesla is not interested in manufacturing in India, instead, they are opening showrooms, Union Minister for Heavy Industries HD Kumaraswamy told reporters on Monday.
“Tesla, we are not actually expected from them, they are only to start showrooms. They are not interested in manufacturing in India,” the minister said.
Heavy Industry Secretary Kamran Rizvi added, “So the real intent we’ll know when we open the application and if the company still feels like investing. What minister sir is telling is about what people they come and told informally.”
The minister however 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.
The government also said that European companies are interested in investing in India as they have left hand drive like in India and they don’t have to do much changes for exporting their cars, unlike US which has a right hand drive.
The new EV policy announced in 2022, has given many concessions for companies who will invest in India and set up manufacturing units.
The policy allows a duty of 15 per cent if a company invest USD 500 million in a manufacturing plant in India. In the first three years the company will have to source 25 per cent of parts locally which has to be increased to 50 per cent by end of fifth year.
The company will be allowed to export a maximum of 8,000 units annually to India against a highly reduced duty of 15 per cent.
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 past indicated that he was interested in investing in India, but “high import duty” structures were a bone of contention.
Tesla’s intension 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 provided for setting up manufacturing plant in India. (ANI)
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