Tesla to offer their first car in India with a starting price of Rs. 20 lakhs
Tesla to finally come up with a factory in India and a locally manufactured car rumoured to go on sale with a starting price of Rs. 20 lakhs.
The American EV maker has finally entered into discussions with the Indian government regarding a prospective investment to establish a car manufacturing facility in the country.
The proposed factory would have an annual production capacity of up to 5,00,000 electric vehicles, catering to the Indian market.
In addition to serving the domestic market, Tesla also intends to leverage India as an export hub, exporting vehicles to countries within the Indo-Pacific region.
Reportedly, Tesla has presented an ambitious plan to the Indian authorities, with hopes of reaching a mutually beneficial agreement that facilitates local manufacturing while ensuring fair competition.
The change in Tesla’s stance toward investing in India follows Elon Musk’s recent meeting with the Indian Prime Minister during the latter’s visit to the United States. Following the meeting, Musk stated that he had been encouraging Tesla to invest in India and was actively working on determining the right timing for the move.
Tesla had reestablished communication with the Indian government in May, sending a delegation to the country a month prior to Prime Minister Modi’s visit. This potential investment by Tesla aligns with the global strategy of companies seeking to diversify their manufacturing operations beyond China. Nevertheless, Musk remains optimistic about China’s significance in manufacturing.
Tesla’s interest in the Indian market has been ongoing for several years. However, previous plans were abandoned last year due to the lack of special incentives for importing cars at lower duties.
The Indian government has consistently emphasised its preference for local production over car imports, including those from China. Simultaneously, India has been actively promoting its domestic automobile market, which concluded last year as the fourth-largest globally, trailing only China, the United States and Japan, with around 3.9 million vehicles sold.
The potential entry of Tesla into the Indian market, particularly in the affordable segment, holds significant promise for the country’s electric vehicle industry.