Tesla is poised to explore opportunities in India, eyeing a potential $2 billion to $3 billion investment for an electric car plant.
This move by Tesla arrives amidst a backdrop of global shifts in the electric vehicle (EV) landscape, with markets like the US and China witnessing intensified competition and a moderation in EV demand, a national business daily reported recently
Tesla itself experienced a decline in first-quarter deliveries, falling short of estimates.
According to emerging reports, Tesla will dispatch a team from the United States later this month to evaluate suitable locations for the plant.
The focus will primarily be on states housing automotive hubs, including Maharashtra, Gujarat, and Tamil Nadu.
India recently revised import tariffs on select electric vehicles, offering incentives to manufacturers committing to invest a minimum of $500 million and commence domestic production within three years.
Elon Musk, CEO of Tesla, has long expressed interest in penetrating the Indian market.
However, the Indian government insisted on a commitment to local manufacturing.
Over the past year, Tesla officials have engaged in discussions with Indian government representatives, with Musk holding talks with Prime Minister Narendra Modi in June 2023.
In July last year, Tesla articulated its intentions to establish a factory in India for manufacturing an EV priced at $24,000.
Additionally, the company advocated for reduced taxes on higher-end models targeted for the Indian market, as per reports published an international business news agency.
The potential entry of Tesla into the Indian market is anticipated to catalyse further investments in EVs and could prove advantageous for Indian-based auto parts manufacturers, analysts suggest.
