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Elon Musk’s Tesla (NASDAQ:TSLA) is unlikely to manufacture electric vehicles in India in the near future, according to statements from India’s Union Minister of Heavy Industries, H. D. Kumaraswamy, on June 2, 2025.
Despite India’s recent efforts to attract global EV makers with a new, incentive-rich policy, Tesla’s (NASDAQ:TSLA) immediate focus is likely on selling imported vehicles and opening showrooms, not on local production. “Tesla only wants to open showrooms and sell imported cars,” said Heavy Industries Minister Kumaraswamy on Monday, according to a report by The Economic Times.
The minister also said Europe’s Mercedes-Benz (OTCPK:MBGAF) and Skoda-Volkswagen (OTCPK:VWAGY), Hyundai (OTCPK:HYMTF), and Kia have shown interest in making EVs in India.
India finalized an EV strategy that lowers import taxes for global automakers. Under its latest scheme, companies will be allowed to import a limited number of electric cars at a lower import duty of 15% versus the current 70% if they commit to investing $486M to build EVs in the country.
The policy has been in the works for a year and was originally designed to lure companies like Tesla (TSLA) to set up manufacturing domestically.
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