American automaker Tesla has reportedly proposed the development of its next Gigafactory to local government officials in India, Reuters reports.
In early March, Tesla officially confirmed its plans to build the next Gigafactory in Mexico during Investor Day. The automaker aims to finish construction in just nine months, which may start in the same month as the announcement.
However, the company is still looking for a new site as it aims to produce and sell 20 million electric cars annually by 2030.
Tesla will meet with Indian officials this week
Yesterday’s reports suggest Senior Tesla executives will meet Indian government officials on May 17 and 18, citing a person with “direct knowledge of the matter.”
The source initially claimed that the meeting would revolve around domestic procurement of components and “other issues.”
Now, the latest report has disclosed the meeting agenda, which was apparently about the automaker’s next production plant. Tesla executives apparently proposed erecting its next Gigafactory in India to supply local and foreign markets.
Unfortunately, neither the automaker nor the Indian government officials disclosed further details about the proposed EV production plant.
The plant would nevertheless effortlessly rival Giga Shanghai in terms of sheer production capacity, given its goal to serve both foreign and the sizable Indian auto market.
Interestingly, the proposed Gigafactory does support Indian Prime Minister Narendra Modi’s objectives of boosting India’s position in the global production industry.
Current issue with the Indian market
Trade tariffs on automobiles are substantial in India; some might even amount to 100% of the car’s value. In order for foreign automakers to compete in India’s fast-expanding economy, the Indian government has effectively mandated that companies build domestic production facilities.
There is no denying that these government initiatives have encouraged India to gravitate toward local vehicle production. However, these challenges also limited foreign automakers’ interest.
For instance, Tesla previously planned to penetrate the Indian auto market in 2019. However, it halted the plans after failing to secure a deal for lower trade tariffs.
See Also:
- Tesla puts India entry plans on hold
- India doesn’t want Tesla to Import Cars from China
- CEO Elon Musk follows Indian PM Modi, automotive space reacts
- Elon Musk met with President Yoon Suk Yeol to discuss the possibility of a Tesla Gigafactory in South Korea
- Tesla Gigafactory Berlin finally hits 5,000 unit/week target
Clearly, these taxes are among the main roadblocks for the country’s auto market growth.
That said, it would be interesting to know further details about the Indian government and Tesla’s deals.
However, it is also worth noting that Tesla CEO Elon Musk also recently met with the South Korean President to discuss Gigafactory prospects in the country.
