The electric vehicle (EV) company, led by billionaire Elon Musk, is currently engaged in talks with the Indian government to establish a manufacturing facility that can churn out approximately 500,000 EVs annually, as per a report from the Times of India. Additionally, the company is mulling over the idea of utilizing India as a production hub to export vehicles to nations in the Indo-Pacific region.
According to sources within the government cited in the report, Tesla’s objective is to introduce its electric cars in the Indian market with a starting price of 2 million rupees ($24,400.66). This price tag is more than double the cost of India’s most budget-friendly EV, the MG Comet, and half a million rupees pricier than the Tata Nexon EV, the current best-selling electric vehicle in the nation.
Tesla faced hurdles when attempting to enter the Indian market last year due to the government’s refusal to reduce import duties on vehicles. India enforces import tariffs of up to 100% on EVs. Despite the Indian government’s interest in having Tesla manufacture cars domestically, the company has indicated a preference for initially exporting vehicles to India to assess market demand for its offerings.
In a recent meeting between Elon Musk and Indian Prime Minister Narendra Modi, the Prime Minister encouraged Tesla to make a substantial investment in the country. Subsequently, Tesla entered discussions with government officials in May to explore the incentives available for EVs and battery production.
@elonmusk is fond of Modi. Discussions with India for 500,000 units are ongoing. pic.twitter.com/mfrsK6VykP
— Tesla Synopsis (@TeslaSynopsis) July 13, 2023
The current negotiations are spearheaded by the Indian Ministry of Commerce and Industry, with the aim of reaching a favorable agreement while ensuring fair competition between local manufacturing and exports, as reported by local media outlets.
If Tesla’s plans come to fruition, it will mark a substantial progression for the Indian automotive sector and the country’s efforts to promote sustainable transportation. With a proposed annual production capacity of 500,000 EVs, Tesla could play a pivotal role in propelling India’s transition towards electric mobility.
As discussions between Tesla and the Indian government advance, both parties are working towards reaching an accord that would facilitate Tesla’s entry into the Indian market and potentially establish the country as a key manufacturing and export hub for the company in the Indo-Pacific region.
Image Source: Vitaliy Karimov / Shutterstock
