Electric vehicle maker Tesla, helmed by Elon Musk, is not keen on manufacturing in India despite the government wooing it aggressively through policy incentives.

“Tesla only wants to open showrooms and sell imported cars,” heavy industries minister H.D. Kumaraswamy said on Monday, adding that the American EV maker is unlikely to set up a production base in India anytime soon.

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Tesla has been eyeing India for years, recently finalising showroom space and posting job openings. However, the company appears focused on selling imported vehicles rather than committing to local production.

Meanwhile, in February, US president Donald Trump said he believes any plans Tesla might have to open a factory in India would be "very unfair".

The government is gearing up to invite formal applications under its new flagship policy, Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI).

The scheme promises a reduced import duty of 15% from the current 70% for automakers that invest at least $486 million in local manufacturing.

Kumaraswamy said automakers such as Mercedes-Benz, Skoda-Volkswagen, Hyundai and Kia have expressed interest in setting up EV production in India under the new scheme.

High sticker prices, India’s price-sensitive market and Tesla’s direct-to-consumer sales model could complicate its entry. The Model 3, Tesla’s cheapest car, would still land in luxury pricing territory after import duties.

While Musk has hinted at a $24,000 ‘Model 2’, there is little clarity on when or whether the model will be launched.