Tesla Ventures into India

Exploring $2-3 Billion Electric Car Plant

Billionaire Elon Musk-led Tesla is set to explore potential locations in India this month for its proposed $2 billion to $3 billion electric car manufacturing plant, as reported by UK’s Financial Times.

India recently reduced import taxes on certain electric vehicles for carmakers committing investments of at least Rs.4,150 crore within a three-year timeframe for commencing commercial production.

Incentives for Investment in India

A team from Tesla’s United States headquarters is scheduled to arrive by late April to assess suitable sites for the plant, with a keen focus on states housing automotive hubs like Maharashtra, Gujarat, and Tamil Nadu.

Scouting Mission of Tesla

Tesla’s preference for states with ports, such as Maharashtra, Gujarat, and Tamil Nadu, over Haryana, underscores the ease of exporting cars from these locations.

Strategic Location Choices for Tesla’s Gigafactory 

Tesla’s potential entry into India coincides with a slowdown in EV demand globally and intensifying competition in its primary markets of the US and China, leading to a dip in first-quarter deliveries.

Evolving EV Market Dynamics of Tesla Cars

Tesla’s interest in establishing local manufacturing facilities aligns with New Delhi’s requirement for a commitment to domestic production for market entry.

Local Manufacturing of Tesla Cars in India