Make in India Boost: Skoda-Volkswagen, Mercedes to Build EVs Locally
New Delhi (The Uttam Hindu): India’s ‘Make in India’ initiative is set to gain new momentum as global automobile giants Skoda-Volkswagen and Mercedes-Benz are preparing to manufacture electric cars in the country. These companies have outlined plans for major investments in India, expected to significantly strengthen the electric vehicle (EV) sector.
The government is also actively encouraging this movement. The Ministry of Heavy Industries recently issued new guidelines for EV manufacturing. Under these, companies initiating production in India will receive various incentives and tax benefits. According to the ministry, the objective is to promote domestic production of electric passenger vehicles and establish India as a global EV manufacturing hub.
While Skoda-Volkswagen and Mercedes are progressing with plans to begin production in India, the position of Tesla, the American electric vehicle manufacturer, remains unclear. Union Minister for Heavy Industries, H.D. Kumaraswamy, recently stated, “Tesla is currently only planning to open showrooms in India. They haven’t shown interest in manufacturing.” However, Ministry Secretary Kamran Rizvi gave a more measured response, saying, “Tesla’s true intentions will be clear only once they formally apply.”
Local production is likely to bring down EV prices in India and generate new employment opportunities, particularly in manufacturing, R&D, and supply chains. The Indian government’s Green Mobility Mission and Net Zero Carbon Emissions target will also receive a boost. As the EV sector continues to grow rapidly in India, the entry of major players like Skoda-Volkswagen and Mercedes-Benz is expected to inject fresh energy. If Tesla also decides to manufacture, India’s EV future could become even brighter.