According to Bloomberg, Tesla could start exporting their Electric Models into India starting next year as the government is about to close the deal with the company. This was signaled by the visit of India’s Trade Minister Piyush Goyal who visited Tesla’s Factory in California. He made an official statement calling for the potential doubling of the auto parts from India amounting to $1.9 Billion. India’s lower tariff rates could come in handy with the arrival decision of Tesla in India.
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Vibrant Gujarat Global Summit
An official announcement is anticipated during the Vibrant Gujarat Global Summit in January, according to insiders who prefer to remain anonymous due to the confidential nature of the discussions. The potential states for consideration are Gujarat, Maharashtra, and Tamil Nadu, chosen for their well-established ecosystems supporting electric vehicles and exports.
Tesla is poised to make an initial minimum investment of approximately $2 billion in any chosen plant, as revealed by insider sources. Furthermore, the company aims to elevate its commitment to the Indian market by significantly increasing its purchases of auto parts, potentially reaching up to $15 billion. To enhance cost efficiency, Tesla is exploring the possibility of manufacturing batteries in India, aligning with its strategy to optimize production costs.
This strategic move reflects Tesla’s recognition of the robust electric vehicle infrastructure in these states and showcases the company’s dedication to fostering a strong partnership with India.
The potential investment is not merely financial; it symbolizes a collaborative venture aimed at contributing to India’s burgeoning electric vehicle sector while aligning with Tesla’s vision for sustainable and cost-effective automotive solutions.
Official announcement by Tesla
There is no official announcement from Tesla or the Government. However, the visit of Elon Musk is anticipated in India in 2024.
Tesla Cars in India
The Lowest car of Tesla is the Model 3 starting from 60 Lakhs the car could face tough competition from an already existing brand in India. However, the government’s demand to set up a factory in India.
Tesla opts not to directly import cars into India due to the considerable tariffs imposed. Once the locally manufactured Tesla vehicles become available for purchase, potential pricing could start as low as $20,000. This strategic decision underscores Tesla’s commitment to navigating the market challenges and aligns with its vision to offer more accessible electric vehicles to the Indian consumer. The move towards local production not only addresses tariff concerns but also signifies Tesla’s endeavor to integrate seamlessly into the Indian automotive landscape, delivering cost-effective and sustainable mobility solutions.
Our final argument melts down to Tesla is Tesla! We are already seeing the dominant impact of Western products on Indian audiences with the sales of iPhones. We are not comparing Tesla with Apple but it is to tell the prevalence of foreign entities in the country.
India’s Four-wheeler Industry in India has yet to gain significant traction, constituting a mere 1.3% of total passenger vehicle sales last year, as per BloombergNEF. The downward trend is responsible for expensive EVs and charging infrastructure problems.