0
0
NEW DELHI, 15 July 2023: Tesla Inc, the renowned electric vehicle manufacturer led by billionaire Elon Musk, is looking to make a significant investment in India. The company is currently in discussions with the Indian government to set up a factory and manufacturing hub that will produce electric vehicles for export to the Indo-Pacific region. This move comes after Tesla faced challenges entering the Indian market due to high import taxes imposed on electric vehicles.
According to government sources cited by the Times of India report, Tesla is proposing to establish a factory capable of manufacturing around 500,000 electric vehicles annually. Additionally, the company is exploring the potential of using India as a manufacturing hub to export cars to other countries in the Indo-Pacific region. This strategic move aims to tap into the growing demand for electric vehicles in these markets.
The report states that Tesla’s vehicles will have a starting price of INR 2m (USD 24,400.66). Although this price is higher than India’s most affordable electric vehicle, the MG Comet, and the Tata Nexon EV, which is currently the highest-selling electric car in the country, Tesla is confident in its market positioning.
Tesla suffered a setback last year when the Indian government refused to lower import tax on its automobiles. The country currently imposes import taxes as high as 100 percent on electric vehicles, posing a barrier to Tesla’s entry into the Indian market. However, the company expressed its interest in manufacturing vehicles within India, and discussions have now shifted towards exploring potential incentives for Tesla’s cars and battery manufacturing provided by the government.
The present conversations with Tesla are being led by the Ministry of Commerce and Industry. Their goal is to negotiate a mutually beneficial agreement that ensures fair competition between local manufacturing and exports. The government hopes to put together a “good deal” that takes into account both sides of Tesla’s engagement in the Indian market.
Indian Prime Minister Narendra Modi, during a meeting with Elon Musk, encouraged Tesla to make a significant investment in the country. This signifies the Indian government’s keen interest in attracting Tesla’s investment and expertise. However, as of now, there has been no official comment from the Commerce and Industry Ministry, Tesla, or Elon Musk regarding the ongoing discussions.
Conclusion
Tesla is actively pursuing an investment opportunity in India. By establishing a factory and manufacturing hub, the company aims to produce electric vehicles for export to the Indo-Pacific region. Despite the challenges posed by high import taxes, Tesla is determined to enter the Indian market and contribute to the country’s growing electric vehicle industry. The ongoing discussions between Tesla and the Indian government indicate promising prospects for a mutually beneficial agreement that would open up new opportunities for Tesla in the Indian market.
