 "Another blow to Musk's Tesla, regulators order recall virtually all Cybertrucks over faulty body strips. Image Credit: Reuters")
Elon Musk’s Tesla is not keen on setting up manufacturing in India, despite the country introducing an attractive electric vehicle policy last year to attract global carmakers to one of the world’s largest automotive markets, Union Minister HD Kumaraswamy said.
“Tesla only wants to open showrooms and sell imported cars,” said Heavy Industries Minister Kumaraswamy on Monday, stressing that Musk is unlikely to establish a manufacturing plant in the country any time soon.
Kumaraswamy said India will soon invite applications under its electric vehicle (EV) manufacturing policy. He added that carmakers such as Mercedes-Benz, Skoda-Volkswagen, Hyundai, and Kia have expressed interest in producing EVs in India.
The government has launched a new scheme offering significant tax cuts on imported electric vehicles for foreign carmakers that commit to local manufacturing.
Under the updated plan, companies will be allowed to import a limited number of EVs at a reduced 15 per cent import duty, down from the current 70 per cent, if they agree to invest $486 million in building EVs in India, the Ministry of Heavy Industries said.