May 20, 2024
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Tesla to set up factory in India within 2 yrs; start EV imports next year

India is reportedly nearing the finalization of a deal with Tesla Inc., allowing the American automaker to import its electric vehicles into the country from next year and potentially establish a manufacturing plant within two years. Sources familiar with the Indian government’s plans revealed this information to Bloomberg. The official announcement is anticipated to occur at the Vibrant Gujarat Global Summit in January, with Gujarat, Maharashtra, and Tamil Nadu being considered as potential locations due to their established infrastructure.

According to the report, Tesla is planning an initial investment of around $2 billion for a new plant in India. The company also aims to procure auto parts from India, with an estimated value of up to $15 billion. Tesla is contemplating the production of some batteries in India to reduce costs, though these plans are subject to change. While Tesla CEO Elon Musk stated in June his intention for a “significant investment” in India and expressed plans to visit in 2024, there has been no official confirmation.

As of now, Tesla does not directly import cars into India due to high tariffs. The move to local production could potentially lower the cost of Tesla’s vehicles in the Indian market. Electric cars constituted only 1.3% of all passenger vehicle sales last year in India, primarily due to their high costs and limited charging infrastructure.

In a recent development, Union Minister Piyush Goyal visited Tesla’s factory in Fremont. Although the scheduled meeting with Elon Musk was canceled due to Musk’s health, Goyal engaged with top leadership from India and Tesla’s researchers and engineers.

Picture Courtesy: Google/images are subject to copyright


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