Tesla Is Considering A $25 Billion Bet On The Indian Electric Vehicle Market
Tesla Inc. is considering an investment proposal with the Indian government that would see the company open a factory with the capacity to manufacture roughly 500,000 electric vehicles each year, according to a recent report citing government sources.Should this plan come to light, it would also provide Tesla with a home base for exporting vehicles to other countries in the region.
While details are still murky, it's been reported that the starting price for the vehicles in India will be $24,401. While that's substantially more than India's cheapest electric vehicle, it's competitively priced when compared to Tesla EVs in countries such as the United States.
“Tesla has come to us with an ambitious plan, and we are confident that the movement will be positive this time around, especially as it involves both local manufacturing and exports," said a source discussing the plan with the Times of India.
Last year, the anticipated entrance of Tesla into the Indian market faced hurdles when the national government declined to reduce import tariffs levied on the automaker's vehicles. Notably, India imposes an import tax of up to 100% on electric automobiles.
India expressed its interest in Tesla establishing a local manufacturing base, while the automaker responded with a preference to initially export its vehicles into the country to gauge market demand.
With a modified strategy to penetrate the Indian market, Tesla engaged in negotiations with government representatives in May concerning potential incentives for vehicle and battery production.
The negotiations this time around are spearheaded by India's commerce and industry ministry, aiming to orchestrate a mutually beneficial agreement, ensuring a balanced competitive environment. The talks encompass both domestic manufacturing and exports.
During a recent interaction with Tesla CEO Elon Musk, Indian Prime Minister Narendra Modi encouraged the automotive manufacturer to make a substantial investment in the country.
If everything goes as planned, this will be a big win both for Tesla and the Indian auto market.
Green Energy Movement
This comes at a time when India is rapidly moving towards green energy solutions. As one of the largest energy producers in the world, the country is quickly becoming one of the largest renewable energy producers in the world as well. As the country, and most of the worlds super powers, look to embrace electric vehicle solutions like Tesla, there’s a race to develop more innovative solutions. For example, startups like Airthium are developing solutions to beat out Tesla’s lithium-ion solutions.
Yes please. Let more investments come, also there is a need for competition in the 20 Lakh segment of EVs. Right now it's more like a monopoly.
