Tesla in talks to set up local factory in India for cheaper EVs: Report
By India Today Business Desk: Electric vehicle maker Tesla is actively pursuing talks with the Indian government to establish a local factory. This strategic move aims to enable Tesla to manufacture EVs in India and offer them at more affordable prices.
According to government sources cited by The Times of India, Tesla plans to produce up to 500,000 EVs annually, with prices starting at Rs 20 lakh. If accomplished, this development could significantly boost India’s emerging EV market.
In May, Tesla expressed its interest in building a local factory in India, and as per the TOI report, the company intends to utilize the facility as an export base, similar to its operations in China.
Also Read | Elon Musk heaps praise on Modi leadership, says Tesla in India soon
Sources mentioned in the report described Tesla’s plan as ambitious and expressed confidence in positive outcomes, considering the involvement of local manufacturing and exports.
The establishment of a local manufacturing base would be mutually beneficial for Tesla and India.
For Tesla, it would provide access to the world’s fastest-growing market, tapping into the increasing demand for EVs. Simultaneously, for India, it represents another step towards positioning the country as a global manufacturing hub.
By localising production, Tesla aims to make its cars more affordable in India, paving the way for higher sales and enhancing its competitive position in the nascent Indian EV market.
Watch | Tesla’s India plan: Elon Musk’s company ready to make cars in India
Notably, in the past, Tesla had expressed intentions to enter the Indian market but withdrew due to high tax rates, which rendered its already-expensive vehicles unaffordable for most Indian consumers.
Should Tesla’s plan to establish a local manufacturing presence in India succeed, it would mark a significant milestone for the company, opening doors to a vast market and contributing to India’s industrial growth as a prominent player in the EV sector.
