Despite India’s new electric vehicle policy designed to attract global automakers, Elon Musk’s Tesla is still not interested in setting up a manufacturing unit in the country. Union Minister HD Kumaraswamy confirmed this on Monday.

Tesla Prefers Selling, Not Making, Cars in India

Kumaraswamy, the Minister for Heavy Industries, stated, “Tesla only wants to open showrooms and sell imported cars,” making it clear that the American EV giant is not planning to build a factory in India anytime soon.

This development comes even after the Indian government introduced a special EV policy last year, aiming to bring global carmakers into the Indian market — one of the largest in the world.

India’s EV Policy Attracts Other Global Brands

Kumaraswamy also shared that the Indian government will soon invite carmakers to apply under its new electric vehicle manufacturing policy. He mentioned that major companies like Mercedes-Benz, Skoda-Volkswagen, Hyundai, and Kia have already shown interest in making electric vehicles in India.

New Scheme Offers Tax Cuts for Local Manufacturing

To attract foreign investments, India has launched a scheme that offers tax incentives. This policy allows foreign carmakers to import a limited number of EVs at a reduced import duty of 15%, compared to the current 70%.

However, there’s a condition. To enjoy these tax benefits, companies must commit at least $486 million towards setting up electric vehicle production in India, according to the Ministry of Heavy Industries.