Why Is Elon Musk’s Tesla Ignoring India While Tim Cook Embraces It for iPhone Manufacturing?

India has emerged as one of the most attractive markets for global manufacturers, yet Elon Musk’s Tesla has remained noticeably aloof from its electric vehicle (EV) manufacturing ambitions in the country. While Apple’s CEO Tim Cook is ramping up production in India, aiming to make 25% of global iPhone output in the country, Tesla, under Musk's leadership, has consistently hesitated to commit to local EV production. The discrepancy raises questions about why Tesla, a global leader in EV innovation, is not pursuing the same aggressive manufacturing push that other tech giants, such as Apple, are pursuing in India.

Recently, India’s Minister for Heavy Industries, HD Kumaraswamy, revealed that despite India’s efforts to attract global EV players, including Tesla, the company has no intention of manufacturing in the country. Kumaraswamy confirmed that Tesla would only establish a retail presence with two showrooms, without entering the Indian manufacturing scene.

The government's remarks come as India unveiled a comprehensive scheme offering substantial incentives to encourage EV manufacturing, yet Musk’s Tesla has repeatedly opted out.

This situation is further complicated by Tesla’s long history of failed attempts to enter the Indian market. India’s government had initially insisted that Tesla produce cars locally, a stance that led to the cancellation of Musk’s original plans to open a base in India in 2022.

Tesla had wanted to test the Indian market by exporting vehicles to the country first, only to be confronted with the Indian government’s demand for local manufacturing. This impasse has not been resolved, and in 2023, Musk himself stated that he was "trying to figure out the right timing" to invest in India.

Meanwhile, India has made significant strides in attracting other global automakers to its shores. Mercedes-Benz, Hyundai, Kia, Skoda-Volkswagen, and other players have shown active interest in setting up EV production in India, with some already laying the groundwork to establish manufacturing facilities. Even as India rolls out its incentives to foster a local EV industry, Tesla’s refusal to commit stands out.

One major factor in Tesla’s reluctance may be India’s still-nascent EV market. While the Indian government has cut import taxes on EVs for companies committed to investing $500 million and starting local production within three years, the country’s EV sales still account for less than 3% of the total passenger vehicle market.

Locally made electric vehicles, such as those from Tata Motors and MG Motors, offer more affordable options compared to Tesla’s base model. In fact, the price disparity between Tesla’s offerings and homegrown EVs could be as high as double or triple, making it challenging for Tesla to gain significant traction among India’s price-conscious consumers.

Furthermore, the lack of robust charging infrastructure and suboptimal local road conditions could be another deterrent for Tesla. Musk’s vehicles, particularly the high-end models, require charging stations that are both widespread and reliable—something India currently lacks. This limited charging network poses a challenge for Tesla’s business model, which relies heavily on convenience and ease of use for its customers.

On the other hand, Tim Cook’s Apple has embraced India with open arms. Apple is diversifying its production away from China, and India plays a crucial role in that strategy. The company’s push to manufacture 25% of its global iPhone production in India by the coming years is part of a broader strategy to reduce reliance on China and tap into India’s expanding middle class. In contrast to Musk’s hesitancy, Apple has faced little resistance to ramping up its production in India.

This is further highlighted by the fact that Apple’s primary assembly partner, Foxconn, has already been approved by the Indian government to build a semiconductor plant in a joint venture with the HCL Group. Apple’s willingness to move forward with this investment contrasts sharply with Tesla’s continuing delays.

The different approaches of Tesla and Apple to the Indian market can also be attributed to broader geopolitical and economic factors. U.S. President Donald Trump’s comments in February about Apple’s expansion into India shed light on the strained political climate surrounding American companies operating in the region. Trump voiced concerns that Apple’s move could be perceived as an abandonment of U.S. manufacturing interests, a sentiment that could have discouraged other tech companies, including Tesla, from aggressively pursuing operations in India.

His remarks may also underscore the U.S. government’s broader stance on India’s trade practices, which includes reciprocal tariffs on Indian goods, further complicating the decision-making process for companies like Tesla.

Despite this, India’s push to become a global hub for EV manufacturing is not without its challenges. Tesla’s decision to hold off on manufacturing in India may not be just about market maturity or infrastructure but could also stem from Tesla’s global competition. In particular, Chinese automakers like BYD, already dominant in the EV space, are rapidly expanding their reach.

As Tesla faces declining sales and increased competition, particularly from Chinese EV giants, it may be recalibrating its strategy to focus on markets that offer higher margins or lower barriers to entry, such as the United States and Europe.

Tesla’s market performance has already taken a hit in 2025, with sales plunging to their lowest level in three years amid the growing backlash against Musk’s political associations, particularly his involvement with the Trump administration. Tesla’s image has been affected by Musk’s controversies, and as a result, the company is facing increasing competition globally. In India, where the EV market is still small but growing, Tesla’s hesitation to fully commit could be a strategic decision to wait for more favorable conditions—both in terms of demand and political climate.

On the other hand, Apple’s strategy in India appears to be more aggressive and less dependent on local market conditions. Apple’s decision to shift production away from China is part of a broader strategy to de-risk its supply chain and tap into India’s growing consumer base.

The company’s investment in India not only promises lower production costs but also positions Apple as a key player in the Indian market’s technological evolution. Moreover, India’s large and youthful population makes it an attractive market for Apple’s premium products, offering significant potential for growth despite the competition.

Tesla’s decision to stay on the sidelines in India, while Apple charges forward, highlights the different strategies tech companies take when entering new markets. Apple has been building its supply chain in India for years, forging relationships with the Indian government and local manufacturing partners.

By contrast, Tesla’s reluctance to manufacture in India may reflect its ongoing uncertainty about the timing and market dynamics, as well as the company’s broader focus on other, more profitable markets.

In conclusion, India’s shift toward becoming a manufacturing powerhouse for electric vehicles is a major step forward in its economic ambitions. However, Tesla’s reluctance to fully commit to this vision, while Apple embraces the challenge with open arms, raises questions about the long-term viability of India’s EV push.

While Tesla’s decision may be influenced by several factors, from market conditions to political tensions, it remains clear that the Indian market will continue to evolve. As the country’s EV sector matures, it may ultimately become an attractive option for companies like Tesla, but for now, it seems that Musk is content to sit on the sidelines while others take the lead.