Elon Musk-led Tesla is not interested in manufacturing electric cars in India, Heavy Industries Minister Kumara Swamy said on Monday. The minister added that Tesla is only keen to set up showrooms in India.Interestingly, US President Donald Trump has time and again said that it would be ‘very unfair’ if Tesla were to set up a manufacturing base in India. Musk is Trump’s advisor and was a big donor to Trump’s presidential campaign in 2024. Tesla has shown progress towards its Indian market entry by securing showroom locations and advertising over 25 job positions in the country.Kumara Swamy announced that the government has finalized and notified guidelines for the Scheme to Promote Manufacturing of Electric Cars. Mercedes Benz, Skoda-VW, Hyundai and Kia have shown interest to avail the scheme that aims to promote investment in manufacturing of electric cars, he said.For auto companies to avail the benefits under the scheme, two conditions are ‘non-negotiable’: The first is that electric cars must be manufactured in India within three years; and secondly there should be at least 25% ‘Make in India’ in three years and 50% in 5 years.Earlier this year, Tesla finalised its first five-year lease agreement in India, securing a showroom space in Mumbai for selling imported electric vehicles. The showroom will be situated in the Maker Maxity building, located in the commercial and retail centre of Bandra Kurla Complex, in proximity to the city’s airport.The agreement commenced from February 16, 2025, with Tesla committing to an annual rent of approximately $446,000 for the first year. The space measures 4,003-square-foot (372-square-metre), comparable to the dimensions of a basketball court.
