Tesla Drops Plans to Manufacture EVs in India After Trump’s Warning

New Delhi: Global EV giant Tesla has backed away from plans to manufacture cars in India, days after former U.S. President Donald Trump publicly criticized such a move as "unfair" to American interests.
Trump recently stated that if Tesla were to build a factory in India to bypass U.S. tariffs, it would be “unfair” to the United States — a remark that appears to have influenced the company's stance on its India strategy.
Following this, Union Heavy Industries Minister H. D. Kumaraswamy confirmed on Monday that Tesla is no longer showing interest in manufacturing electric vehicles in India. Instead, the company seems focused only on opening showrooms in the country.
"Tesla... they are more interested in starting showrooms. They are not interested in manufacturing in India," Kumaraswamy told reporters during a press conference in New Delhi.
The minister was speaking at the unveiling of the guidelines for the Scheme to Promote Manufacturing of Electric Cars in India, a government initiative aimed at boosting domestic EV production through investment-linked incentives.
An official from the Ministry of Heavy Industries added that Tesla had participated only in the first round of stakeholder consultations for the scheme. “They did not attend the second and third rounds, and have not shown any further interest,” the official noted.
Tesla CEO Elon Musk had announced in April 2024 that his visit to India was being delayed due to the company’s "heavy obligations." The visit was initially seen as a potential precursor to investment in Indian manufacturing.
India has been actively courting global EV manufacturers as part of its broader push to reduce emissions and boost green mobility. Tesla’s apparent withdrawal from manufacturing plans comes as a setback to those ambitions, especially as the country seeks to position itself as a major EV production hub.