Tesla Factory in India
According to a reliable source, Tesla Inc has submitted a proposal to the Indian government for the establishment of a manufacturing factory in the country. The purpose of this plant would be to produce electric cars for both the domestic market and exports.
The proposal was shared during a meeting between senior Tesla executives and government officials. It is worth noting that the discussions did not involve negotiations regarding a potential reduction in import taxes on electric cars.
The Tesla team is currently in India to further engage with the government and explore opportunities for local collaboration.
Tesla’s renewed interest in India comes approximately a year after it postponed its plans to enter the Indian market due to the inability to secure lower import taxes. CEO Elon Musk had expressed concern about the high import taxes, which he regarded as some of the highest in the world.
Target and Aims behind Factory
Tesla’s new proposal for a manufacturing factory in India indicates a shift towards local sourcing, aligning with Prime Minister Narendra Modi’s “Make in India” campaign. This initiative aims to attract manufacturers, particularly as companies seek to diversify their supply chains beyond China.
By setting up a manufacturing factory in India, Tesla would not only be able to cater to the domestic market more efficiently but also take advantage of local sourcing, reducing import costs and aligning with the government’s emphasis on boosting domestic manufacturing. This move could potentially strengthen India’s position as a hub for electric vehicle production and contribute to the country’s economic growth.