Tesla had advocated for a reduction in import taxes on electric cars in India. However, the government has emphasized the importance of local manufacturing of electric vehicles.
Following a meeting between Tesla CEO Elon Musk and Prime Minister Narendra Modi in June, the groundwork for potential investments in the country was laid.
Affordable EVs Made in India
Tesla’s representatives have revealed that the $24,000 electric car produced in India will be approximately 25% cheaper than Tesla vehicles sold globally.
This pricing places it below the cost of the Model 3 sedan available in China. As India currently constitutes only 2% of the total electric vehicle market, this move by Tesla holds tremendous potential for boosting the country’s electric mobility adoption.
India ranks as the third-largest automobile market worldwide, making it a critical focus for Tesla’s expansion.
Meeting with Commerce Minister
Tesla’s representatives will hold crucial discussions with Union Commerce Minister Piyush Goyal.
The agenda will encompass topics such as the electric vehicle supply chain and potential factory locations in India.
Tesla’s long-standing principle of reducing vehicle prices with sustained success underscores the significance of establishing a localized manufacturing presence in the country.
Global Tesla Plants
Apart from its existing manufacturing facilities in California, Tesla has expanded its global reach with plants in Mexico, Berlin, and Shanghai.
The Shanghai plant, in particular, plays a pivotal role in Tesla’s manufacturing capabilities, contributing around 40% of the company’s overall global production.
Tesla’s potential investment in India has sparked immense interest among automobile enthusiasts and industry observers.
With its vision for affordable electric mobility,
the company aims to make a lasting impact on India’s automotive landscape and accelerate the nation’s transition towards a sustainable future.
