Elon Musk’s Tesla is set to enter India, reports the Financial Times. A team from the company is slated to arrive this month to scout for potential locations for a groundbreaking multibillion-dollar electric vehicle (EV) plant.
This strategic move comes on the heels of India’s recent decision to slash import tariffs on EVs, a development Tesla actively advocated for.
Also Read: Is India on the verge of shifting gears to EVs?
Previously, India imposed hefty import taxes ranging from 70 per cent to 100 per cent on automobiles. However, in a bid to attract investment, this tariff has now been reduced to as low as 15 per cent, provided the investing company commits to establishing a manufacturing facility in the country with a minimum investment of US$500 million.
Last June, Musk held discussions with Indian Prime Minister Narendra Modi, expressing his keen interest in investing in India at the earliest opportunity. Now, Tesla’s focus is on scouting potential sites in automotive hubs such as Maharashtra, Gujarat, and Tamil Nadu. These regions boast established infrastructure and port facilities, crucial for streamlining exports—a clear indication of Tesla’s global aspirations for its proposed factory.
While Tesla has enjoyed a robust presence in China, serving as a vital market and manufacturing centre, stiff competition from local rivals like BYD has intensified domestically. In response, Tesla appears poised to shake up the market dynamics by targeting the production of a sub-US$30,000 model in India. This move not only aims to bolster Tesla’s presence in Southeast Asia but also to capture markets in the Gulf countries, Africa, and Europe.
Also Read: Thinking out loud: Are electric vehicles as sustainable as we believe?
Recently, Vietnamese EV maker VinFast announced its plans to set up a factory in India. As per a report, the company is moving fast to kick-start its India operations in Q3 or H2 2024.
—
X marks Echelon. Join us at Singapore EXPO on May 15-16 for the 10th edition of Asia’s leading tech and startup conference. Enjoy 2 days of building connections with potential investors, partners, and customers, exploring innovation, and sharing insights with 8,000+ key decision-makers of Asia’s tech ecosystem. Get your tickets here.
Want more from your Echelon experience? Be an Echelon X sponsor or exhibitor. Send enquiry here.
The post Tesla plans multibillion-dollar EV plant in India appeared first on e27.