After failed negotiations from last year, new report reveals that Tesla India factory could soon be a reality
Tesla is in talks with the Indian Government to set up a manufacturing facility here. A recent report mentions that Tesla is highly likely to set up a plant here instead of just importing vehicles for sale.
Last year, Tesla intended to get special incentives in import taxes from the Indian Government. This was to import Tesla cars to India from abroad, most likely from their nearest manufacturing plant in China.
Tesla India Factory – Could be a reality soon!
Now Tesla not only intends to manufacture vehicles in India, but to make its Indian plant a global export hub. The narrative from last year and now, seems to be the result of a high-level meeting between Tesla CEO Elon Musk and Indian Prime Minister Narendra Modi in the USA, last month.
After this meet, Elon Musk expressed that Narendra Modi is pushing the company to invest heavily in India. He clarified that Tesla intends to invest in India and was figuring out the timing. He assured that Tesla would be operational in India as soon as humanly possible.
Because Tesla’s newest plans are aligned with the “Make In India” initiative, we could see “Made In India” Tesla vehicles exported to multiple markets. Reports mention a potential production capacity of 5 lakh units per annum with starting prices from as low as Rs. 20 lakh (probably ex-sh).
What to expect?
If we look at Tesla’s current portfolio, which include Model S, 3, X and Y, there are no vehicles at the Rs. 20 lakh price point. Their most affordable currently, is Model 3 which starts from USD 40,240 which roughly translates to INR 33 lakh with today’s conversion rates. Tesla is working on launching a smaller electric car, which will sit below the Model 3.
It is likely that India will get this car. So, if the Rs. 20 lakh price point turns out to be a reality, we could be looking at an India-specific vehicle that will be the company’s most affordable. This could be a new milestone for Tesla and could benefit the brand in other ASEAN countries too. To get its maiden vehicle at this price point, Tesla could heavily invest in local battery manufacturing as well.
India’s charging infra could see a huge boost if Tesla intends to invest in its Supercharger network too. All in all, India is climbing up the ranks and becoming a global automotive hub.
Source
Source: Electric - rushlane.com
