In a major development for India’s electric vehicle (EV) sector, Tesla has opted out of the government’s new EV manufacturing scheme, citing no intention to establish a production base in the country. Union Heavy Industries Minister HD Kumaraswamy revealed this while unveiling the final guidelines for the ₹4,150 crore ($500 million) production-linked incentive (PLI) scheme.
“Tesla may explore showrooms in India, but has clearly conveyed no interest in setting up local manufacturing,” said Kumaraswamy.
Tesla Out, Others In
While Elon Musk’s Tesla has declined, several global automakers have shown active interest:
- Mercedes-Benz
- Hyundai
- Volkswagen
- Skoda
- Honda
- Kia
These companies are reportedly in discussions with the government to take advantage of the new scheme.
EV Policy Highlights
Here’s a quick look at the finalized EV manufacturing policy:
Minimum Investment: $500 million (₹4,150 crore)
Customs Duty: 15% on EV imports (for 5 years, up to 40,000 units)
Production Deadline: OEMs must begin production within 3 years
Localisation Targets:</str
