Yes, after years of hearing rumours, talks and the issues of both parties – the Indian government and Tesla owner Elon Musk we might have some good news. According to sources, the prospect of a Made-In-India Tesla is much more real. We soon could see an agreement between the Indian government and Tesla. The Indian government has been directly dealing with Tesla to set up a manufacturing plant in India. How and when will this all work out? Let’s read more below.
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First, the plan is to make the official announcement next year, in January. This will involve Elon Musk visiting India and attending the Vibrant Gujarat Global Summit. We have understood that after years of discussions and meeting with Nitin Gadkari, Minister for Road Transport & Highways and recent visits of Piyush Goyal, Minister of Commerce and Industry, Tesla is now moving to sign a agreement in January, 2024. It is understood that the state of Gujarat is in the front running for this factory to be built as the infrastructure of electric vehicle auto components and their supply chain will be ideal in this location. Also another factor is the road and ports infrastructure in this state that will help with logistics around the country and the company in exports.
Under this agreement, the company will be selling cars imported to India first. These cars will carry a lower import duty upto approx. 15% than the current 100%. This will also be lucrative for OEMS like Mercedes Benz, Audi, BMW, Jaguar and Volvo for their EV plans in India too. Tesla will be investing a total of USD 2 billion initially and in 2 years it will set up a factory and start selling cars made-in-India. There has always been a plan for a more affordable Tesla and we could see the company make its entry level model in India. This initial USD 2 billion investment will then expand to USD 15 billion with components purchase, expansion and much more development. It is also thought that Tesla will ultimately to bring costs down start manufacturing electric vehicles batteries in India.
This move from the big American OEM to come to India and start investing and manufacturing could set a global trend. It will attract more OEMs looking to set up a base in India for electric car, technology, battery and parts manufacturing. Would you be in the market for a Tesla? And especially a MADE-IN-INDIA Tesla? Let us know.
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