Tesla ‘Not Interested’ in Manufacturing in India: H.D. Kumaraswamy
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New Delhi: Union heavy industries minister H.D. Kumaraswamy said that Elon Musk’s Tesla is not interested in manufacturing electric vehicles in India but will look for opening two stores in the country, The Wire reported.
Presenting guidelines to the ministry’s flagship Scheme to Promote Manufacturing of Electric Passenger Cars in India, H.D. Kumaraswamy said that EV makers like Mercedes-Benz, Volkswagen-Škoda, Hyundai and Kia are interested in participating.
‘Mercedes-Benz, Volkswagen-Škoda, Hyundai and Kia — all these companies have already shown interest. Tesla, we are actually not expecting from them. They (Tesla) are going to start two showrooms, they are not interested in manufacturing in India,’ Kumaraswamy told the media.
The detailed guidelines for the scheme that the minister issued on Monday made it clear that approved applicants have to make a minimum investment of Rs 4,150 crore for manufacturing EVs domestically alongside defined domestic value addition (DVA) goals.
The companies will then be eligible to import a ‘maximum of 8,000 completely built-in units (CBU) of electric four-wheelers per year,’ The Indian Express reported.
This comes with a reduced Customs duty of 15 per cent for a five-year period.
It is reported that scheme is limited to global manufactures having the revenue of at least Rs 10,000 a year alongside fixed assets which should be valued at least Rs 3,000 crore.
‘The scheme is strategically crafted to position India as a global hub for electric vehicle manufacturing… By mandating domestic value addition targets, the scheme will further boost the ‘Make in India’ and ‘Aatmanirbhar Bharat’ initiatives, while empowering both global and domestic companies to become active partners in India’s green mobility revolution,’ Kumaraswamy reportedly said.
When it was notified, the scheme was viewed as a victory for Tesla after it reportedly lobbied for similar concessions.
Musk, a strong opponent of India’s high tariffs on imports of vehicles, was to visit India in April last year, which he called off due to ‘very heavy Tesla obligations’.