- By Divanshi Sharma
- Tue, 09 Apr 2024 12:26 PM (IST)
- Source:JND
Tesla In India: Tesla is making significant moves to establish a strong presence in the Indian market by searching for an ideal location to build an EV manufacturing plant. Reports suggest that the governments of Maharashtra and Gujarat have offered attractive land deals to Tesla for this purpose, signaling a major step forward in India's electric mobility sector.
The proposed manufacturing plant is expected to require an investment ranging from $2 billion to $3 billion and will cater to both domestic and international markets for Tesla's electric vehicles. This initiative aligns with India's new EV policy, which incentivises setting up manufacturing plants in the country. Elon Musk, CEO of Tesla in a X Spaces session said, “India is now the most populous country in the world, based on population. India should have electric cars just like every other country has electric cars. It's a natural progression to provide Tesla electric vehicles in India.”
Under the government's EV scheme, which aims to position India as a top destination for advanced EV technology. Its key objectives include attracting investments from global EV manufacturers, promoting advanced EV adoption and supporting the Make in India initiative. The policy also requires a minimum investment mark and encourages usage of domestic resources. For vehicles valued at $35,000 or more, the policy imposes a 15 per cent customs duty reduction for five years if manufacturers establish manufacturing facilities in India within three years. The policy also limits the number of EVs allowed for import depending on investment levels.
Tesla plans to send a team of experts to look for suitable locations across India for its proposed EV manufacturing plant. Additionally, the Indian government is expected to invite applications for the EV price reduction scheme soon, allowing eligible companies to import up to 8,000 vehicles annually. Tesla's CEO Elon Musk has expressed confidence in bringing Tesla to India as soon as possible, with plans to introduce popular models like the Model 3 and Model Y initially.
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This move not only benefits Tesla but also showcases a significant step for India's electric vehicle sector and local manufacturing industry. The potential investment of $2-3 billion from Tesla in India is expected to boost the country's electric vehicle market significantly. With plans to cater to both domestic and international demands, Tesla's presence in India could have a significant impact on the automotive industry and the economy as a whole.