The Crossbill News Desk
Union Heavy Industries Minister H.D. Kumaraswamy has clarified that Tesla is not interested in manufacturing electric vehicles in India, even as the government unveiled detailed guidelines for a new import-linked incentive scheme aimed at promoting domestic EV production.
The scheme, notified in March last year, allows companies to import electric four-wheelers at a reduced duty of 15%—down from the existing 70% to 100%—if they commit to investing at least Rs 4,150 crore (approximately $500 million) and set up a manufacturing facility in India.
Speaking on Monday, June 2, while announcing the scheme’s operational framework, Kumaraswamy said that established global automakers like Mercedes-Benz, Volkswagen, Skoda, Hyundai, and Kia had expressed interest in availing the incentives.
However, he ruled out Tesla’s participation, saying the Elon Musk-led firm had only shown interest in opening two showrooms, not in manufacturing.
“Tesla, we are not actually expecting from them. They have only to start two showrooms,” Kumaraswamy said, noting that the company had identified sites in Delhi and Mumbai for selling imported EVs, according to earlier reports.
The scheme was initially perceived as a win for Tesla, which had long lobbied the Indian government for reduced import tariffs.
Musk was scheduled to visit India in April last year to meet Prime Minister Narendra Modi and announce a $3 billion investment in a local manufacturing unit. However, he cancelled the visit, citing heavy commitments at Tesla, and soon after made an unannounced visit to China, where the company made significant strides in regulatory approval for its self-driving technology.
Under the new scheme, approved companies can import up to 8,000 electric vehicles annually for five years. These firms must establish operational manufacturing plants within three years of receiving approval and meet minimum domestic value addition (DVA) targets of 25% within the first three years and 50% within five years.
The Ministry of Heavy Industries stated that the application window for companies interested in participating will remain open for at least four months and may begin as early as this month.
The scheme, notified in March last year, allows companies to import electric four-wheelers at a reduced duty of 15%—down from the existing 70% to 100%—if they commit to investing at least Rs 4,150 crore (approximately $500 million) and set up a manufacturing facility in India.
Speaking on Monday, June 2, while announcing the scheme’s operational framework, Kumaraswamy said that established global automakers like Mercedes-Benz, Volkswagen, Skoda, Hyundai, and Kia had expressed interest in availing the incentives.
However, he ruled out Tesla’s participation, saying the Elon Musk-led firm had only shown interest in opening two showrooms, not in manufacturing.
“Tesla, we are not actually expecting from them. They have only to start two showrooms,” Kumaraswamy said, noting that the company had identified sites in Delhi and Mumbai for selling imported EVs, according to earlier reports.
The scheme was initially perceived as a win for Tesla, which had long lobbied the Indian government for reduced import tariffs.
Musk was scheduled to visit India in April last year to meet Prime Minister Narendra Modi and announce a $3 billion investment in a local manufacturing unit. However, he cancelled the visit, citing heavy commitments at Tesla, and soon after made an unannounced visit to China, where the company made significant strides in regulatory approval for its self-driving technology.
Under the new scheme, approved companies can import up to 8,000 electric vehicles annually for five years. These firms must establish operational manufacturing plants within three years of receiving approval and meet minimum domestic value addition (DVA) targets of 25% within the first three years and 50% within five years.
The Ministry of Heavy Industries stated that the application window for companies interested in participating will remain open for at least four months and may begin as early as this month.
Comments (0)
Leave a Comment