Tesla is ready to open a factory in India; This will allow automakers in the US to easily ship their electric cars to India in the very next year. However, the factory will be set up within two years.
An announcement can occur at the Vibrant Gujarat Global Summit in the coming year. Various states of Gujarat, Maharashtra, as well as Tamil Nadu, are some of the considerations, as they have good ecosystems for electric cars or vehicles and exports in the country.
Tesla is going to commit a first investment in any plant of around $2 billion, as per the sources. Also, it is going to increase the number of auto parts manufacturers across the country by around $15 billion. The US automaker is also going to make batteries in India to cut down on their costs.
However, there is nothing like a final decision, and the plans can change at any time. Tesla’s chief executive officer, the famous Elon Musk, said that they plan to make big investments in the country, and he is going to visit India in 2024.
Getting into the populous nation across the globe where the demand for electric vehicles is increasing with every passing day will benefit Tesla. The company has factories in countries like Germany, the US, and even China.
Tesla is not importing cars directly to India. The reason behind it is high tariffs. When Tesla’s initially local-made car goes on sale, it can retail for around $20, 000, as per the sources.
Now Tesla is planning to invest around $2 billion to set up a factory in the country on one condition. The condition is that if the Indian government cuts down the import duty on Tesla vehicles to 15%, this should be done for the initial two years while operating in India.
As per Reuters, India is working on its EV policy to slash some import taxes to 15% in comparison to the current 100% on cars, which are around $40,000.
Elon Musk-led EV maker is agreeing to invest around $500 million if the Indian government decides to reduce duty for around 12, 000 vehicles, as well as $2 billion if it is for around 30, 000 vehicles. The Indian government is going to examine the viability of its proposal. Tesla is willing to invest around $2 billion and can reduce car numbers at lower duty.
