- By Divanshi Sharma
- Thu, 04 Apr 2024 12:26 PM (IST)
- Source:JND
Tesla in India: US-based electric car manufacturer, Tesla, is making strides towards entering the Indian market with ambitious plans for production and investment. According to a report by the UK-based The Financial Times, Tesla is exploring potential manufacturing locations in India, with plans for a proposed $2 billion to $3 billion EV manufacturing plant. The company is reportedly eyeing states like Gujarat, Maharashtra, and Tamil Nadu to make use of their coastal locations for easier exports.
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In addition to this, the Elon Musk-owned EV carmaker has reportedly commenced production of right-hand drive cars at its Giga factory in Berlin. Car enthusiasts are linking the production of right-hand drive cars with Tesla's debut in India and are expecting that Tesla is aiming to bring these models to the Indian market by the end of 2024.
These cars will initially be produced in small numbers, and will serve as test prototypes to adapt to the Indian environment, media reports said. While specific models for the Indian market haven't been disclosed, it is expected that popular models like Model 3 and Model Y will be launched first.
India's recent EV policy changes, including reduced import duties and incentives for local manufacturing, have attracted Tesla's attention. The company aims to capitalise on India's potential as the world's third-largest vehicle market and accelerate EV adoption in the country. Tesla's entry is expected to increase investments in the EV sector and benefit local auto parts manufacturers.
Despite past challenges, such as the emphasis on local manufacturing commitments, Tesla remains determined to establish its presence in India. Tesla’s CEO Elon Musk's meeting with Prime Minister Narendra Modi in 2021 signalled the company's interest in building a factory to produce affordable EVs specifically designed for the Indian market.
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Tesla officials will reportedly visit India to look for potential factory locations soon. This initiative underlines the EV manufacturer's commitment to India's expanding EV market. If successful, Tesla's entry could not only drive EV adoption but also bring in a new era of investments and technological advancements in the Indian automotive sector.