Tesla Inc., the electric vehicle giant headed by billionaire Elon Musk, might be interested in only selling its cars in India with no plans so far on manufacturing them in the country, according to a statement from HD Kumaraswamy, the Union Minister of Heavy Industries and Steel, of India on Tuesday.
“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, ” Kumaraswamy told ANI.
This was in the wake of a new portal launched by the government for global EV makers to invest and make their products in India, according to a PIB press release.
This portal is a part of the Scheme To Promote Manufacturing of Electric Passenger Cars In India which was launched on March 15, 2024.
The scheme has calibrated customs duty concessions and clearly defined domestic value addition milestones, aiming to balance the introducition of cutting-edge EV technologies and growing indigenous capabilities.
Approved applicants would be required to make minimum investment of Rs. 4,150 crore in line with the provisions of the scheme.
To encourage the global manufacturers to invest under the scheme, the approved applicants will be allowed to import completely built-in units of electric four-wheelers with a minimum cost, insurance, and freight value of $35,000 at reduced customs duty of 15% for a period of five years from the application approval date.
The launch of this portal under the SPMEPCI scheme opens new avenues for global electric vehicle manufacturers to invest in India’s rapidly evolving automotive landscape, the release said.
This scheme is in line to achieve the “Net Zero” emission goals by 2070, and also strengthens the pillars of ‘Make in India’ and ‘Aatmanirbhar Bharat’, it added.
The scheme positions India as a trusted global hub for next-generation automotive manufacturing and technology leadership, Kumaraswamy said.
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