Elon musk’s Tesla is glaring for potential locations in India for its intended electric car and manufacturing plant, with an investment ranging between $2 billion to $3 billion.
This comes after India lately diminished the import taxes on certain electric vehicles, provided Tesla invest at a conservative estimate Rs. 4,150 crore and get down to commercial production within three years.
Tesla proposes to send a team from United States by late April to lookout sites for the plants, with a focal point states like Maharastra, Tamil Nadu, and Gujarat, imputable to their automative hubs. In spite of the facts that Haryana also holds automotive plants, Tesla prefers states with ports and accessible car exportation.
Tesla’s recent move aligns with a global slowdown in insistence for electric vehicles, which administered to a decrease in first-quarter deliveries for the company. Nevertheless, Tesla is considering establishing a battery plant in a manner similar to its existing “gigafactories” located in California, Texas, Berlin, and Shanghai.
In exciting news, it seems that India and Tesla are drawing closer to a significant deal for importing EVs and setting up manufacturing plants. Elon Musk has been keen on entering the Indian market for quite some time, with ongoing discussions between Tesla representatives and Indian government officials since last year.
One of Tesla’s proposals involves producing an EV priced at $24,000 in India. Additionally, they’ve requested reduced taxes for their higher-priced models. If this deal comes through, it could mark a major milestone for Tesla’s presence in India and potentially stimulate further investments in EVs. Analysts are optimistic, suggesting that Tesla’s entry could also benefit local auto parts manufacturers.
In terms of policy, the Indian government has set a requirement for EVs to have a localization level of 25% by the third year and 50% by the fifth year to qualify for lower custom duties on Completely Built Units applicable to cars priced at a minimum of $35,000. This policy could pave the way for greater access to global technologies, a broader range of products, and improved cost competitiveness, ultimately fostering greater adoption of EVs in India.
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