Tesla unlikely to manufacture cars in India, confirms Minister Kumaraswamy

Union Heavy Industries Minister H.D. Kumaraswamy has stated that American electric vehicle giant Tesla has no plans to manufacture cars in India, despite ongoing discussions with the government.

Also read: Karnataka unveils solar-powered EV charging hub near Bengaluru airport

Speaking to reporters in Delhi, Kumaraswamy revealed that Tesla representatives attended only the initial round of talks regarding local manufacturing. “They did not participate in the second and third rounds. It’s clear that their interest lies solely in opening car showrooms in India,” he said.

Tesla, led by Elon Musk — the world’s richest man and a known ally of former U.S. President Donald Trump — has reportedly shown reluctance to establish a production base in India. Citing Trump's past remarks, Kumaraswamy noted that manufacturing Tesla vehicles in India could be perceived as "unfair" to American interests.

This position likely influenced Tesla’s decision to limit its Indian operations to retail showrooms rather than production facilities.

The minister further suggested that Tesla may manufacture electric vehicles in other countries and export them to India for retail sale. “It is confirmed that Tesla will not manufacture in India. The plan is to sell imported cars through showrooms,” he reiterated.

The development dampens hopes of local manufacturing jobs and investment from the EV giant, though it keeps the door open for Indian consumers to purchase Tesla vehicles via imports.