It appears that Tesla may be able to sell its cars in India via CBU and then construct Tesla automobiles in India at a later date. The Indian government and Tesla are thought to be close to negotiating an agreement that will allow the US EV maker to not only sell models built in other countries but also build up a manufacturing factory in India.
- Tesla's India plans could be revealed at the Vibrant Gujarat Global Summit in January 2024.
- Tesla may manufacture battery packs in India.
- Tesla is planning to spend USD 15 billion on Indian auto parts.
While talks between Tesla and the Indian government halted last year, they resumed in May of this year. According to sources close to the Indian government, the new arrangement could result in Teslas being sold in India as early as next year with the carmaker producing Indian-made vehicles at its new plant within the next two years.
According to sources, the announcement will be made at the Vibrant Gujarat Global Summit, which will take place from January 10 to 12, 2024. At the moment, Gujarat, Maharashtra, and Tamil Nadu are being evaluated for the facility because these three states have reasonably well-developed ecosystems for producing EVs and assisting in their export.
Details about Tesla India's production and battery plant
According to a source, the US-based electric vehicle manufacturer will need to provide a minimum expenditure of USD 2 billion, or roughly Rs 16,665 crore, to establish the manufacturing factory. Tesla had previously projected to source automobile components for USD 1.9 billion (about Rs 15,700 crore) this year, nearly tripling the amount it sourced for the previous year. The company now plans to increase the amount it purchases of Indian auto parts to USD 15 billion (around Rs 1.2 lakh crore).
Although a final decision has not been taken and the above-mentioned intentions could change, Elon Musk, the CEO of Tesla, stated in June that the business expects to make a "significant investment" in India. Musk also hopes to visit the nation in 2024. The brand is reportedly planning to manufacture and market battery storage systems in India according to a Reuters story and the company even sent a proposal to Indian officials searching for incentives to establish the Powerwall battery storage factory.
Tesla car prices will increase due to localization and tax benefits.
According to reports, the Indian government is thinking of reducing import duties for foreign electric vehicle manufacturers for a five-year term, but only if those companies agree to establish local production facilities. With the implementation of this legislation, our market may become more accessible to Tesla vehicles as the firm prepares to launch its operations in India. When Tesla's first models built in India go on sale, they might cost as little as USD 20,000 (about Rs 16.67 lakh), according to sources.