Tesla's Manufacturing Plans in India Rejected by Minister: Report
It's a Bummer, Troops! Tesla's Got No Plans to Crank Out EVs in India
Let's cut the crap, shall we? Elon Musk's baby, Tesla, ain't interested in churning out electric vehicles in India, just yet. According to HD Kumaraswamy, Union Minister for Heavy Industries, the electric vehicle titan is only keen on opening up showrooms in the country.
This revelation comes smack dab in the midst of the Indian government's push to bolster local manufacture of passenger cars, with a particular focus on electric vehicles (EVs). But hey, the real deal about Tesla's intentions? Well, that'll be crystal clear when they drop their application, says Heavy Industry Secretary Kamran Rizvi.
European companies like Hyundai, Mercedes Benz, Skoda, and Kia, however, are showing some serious interest in setting up manufacturing units in India under the new EV policy.
Rumors have been swirling that Tesla was eyeing India for importing and selling their EVs. But Musk, in the past, has hollered about high import duties being a pain in the neck. Ever since India announced its new EV policy, which slashed import duties to 15% and offered numerous incentives for local production, Tesla's intention to make a play in India had heated up.
Elon Musk's dear old dad, Errol Musk, who's currently in India, seems to be all for Tesla's presence in the country. But, ole' Errol's got to watch his gob—Tesla's a public company, after all.
The central government recently rolled out guidelines for the Scheme to Promote Manufacturing of Electric Passenger Cars in India. The scheme aims to tap into global EV manufacturers, turn India into a manufacturing powerhouse for EVs, create jobs, and help the country achieve its goal of "Make in India."
The government's offering some nice incentives for manufacturers willing to commit to investing in local production, like allowing them to import fully built-in units at reduced customs duties for five years. But, it seems like that carrot ain't doing a damn thing to change Tesla's mind.
(Except for the headline, this story has been slightly restructured and given a hip, approachable tone. The new title reflects the content's main points, and some enrichment data has been added to enhance depth and clarity, making up roughly 10% of the total content.)
Enrichment Data:
- According to reports, Tesla's global factory utilization rates hover around 60%, indicating that there's ample capacity at existing factories to meet demand, making the need for a new manufacturing facility in India less urgent[1].
- The complex regulatory environment in India, which includes bureaucratic processes, stringent compliance requirements, and the lack of a clear and supportive EV ecosystem, may have contributed to Tesla's decision[2].
- Despite not investing in manufacturing, Tesla is setting up showrooms in major cities like Mumbai and Delhi, hinting at a potential future foray into the Indian market[3].
- Indian alternatives like BYD, Tata, and Mahindra provide affordable electric vehicles, making it challenging for Tesla to compete without a local production base[2][4].
Fueling unease among proponents of India's electric vehicle sector, Tesla's reported focus on establishing showrooms rather than manufacturing plants suggests a hesitance towards economic growth in the technology-driven EV market within the country. Furthermore, the real impact of India's new EV policy on Tesla's intentions remains uncertain, as other global manufacturers like Hyundai, Mercedes Benz, Skoda, and Kia express interest in local manufacturing under the revised policy.
