Tesla's Investment Plans in India: Setting Up an Electric Vehicle Factory and Export Hub
Tesla is currently in talks with the Indian government about investing in India. They want to build a factory there to produce around 500,000 electric vehicles every year.
Tesla is currently in talks with the Indian government about investing in India. They want to build a factory there to produce around 500,000 electric vehicles every year. The plan is to use India as a manufacturing hub to export cars to countries in the Indo-Pacific region.
According to reports, Tesla's cars in India will start at a price of 2 million rupees ($24,400.66). This is more than double the cost of India's cheapest electric car, the MG Comet, and half a million rupees more expensive than the Tata Nexon EV, which is currently the highest-selling electric car in India.
Last year, Tesla faced a setback when the Indian government refused to lower import taxes on its vehicles. Currently, the country imposes high import taxes, as much as 100 percent, on electric vehicles, which made it difficult for Tesla to enter the Indian market.
Initially, Tesla wanted to export its cars to India to test the demand, but now they are exploring options for incentives provided by the Indian government for both cars and battery manufacturing. They are also discussing with Indian officials to find a way to enter the Indian market.
The Indian Commerce and Industry Ministry is leading the discussions this time, aiming to negotiate a fair agreement that considers both Tesla's involvement in the Indian market and local manufacturing. They want to ensure fair competition between local production and exports.
During a meeting with Elon Musk, the Indian Prime Minister encouraged Tesla to make a significant investment in the country. However, at the time of reporting, there were no comments from the Commerce and Industry Ministry, Tesla, or Elon Musk regarding these discussions.
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