Tesla has been dominating major markets, including US and China, with its innovative battery-powered cars. The Musk-led automaker has no plans to stop pushing for its limits, aiming to further expand its reach to many key markets.
Now, it seems that Tesla is planning to establish its next Gigafactory in India with an expected output of 500,000 EVs per year. A local report, citing government sources, further suggests that the company will sell these cars to customers at a base price of just ₹20 lahks.
The Indian Commerce and Industry Ministry courts Tesla with a “good deal”
Times of India reported that Tesla and the Indian government are now “in talks” about possibly developing the company’s first factory in the country.
“Tesla has come to us with an ambitious plan, and we are confident that the movement will be positive this time around, especially as it involves bth local manufaturing and exports.”
Unnamed government source
As mentioned, Tesla reportedly targets an annual production capacity of 500,000 EVs, selling them for only ₹20 lakhs.
According to the report, the Indian Commerce and Industry Ministry is spearheading the negotiations this time, with aims to establish a “good deal” while ensuring a fair playing field for other automakers.
Moreover, the report also noted that Tesla also apparently plans to export cars to other Indo-Pacific markets. That move would be unsurprising, given that Tesla also exports EVs from China to other markets. In fact, the automaker exported 35,886 China-made EVs from Giga Shanghai to global markets, Car News China reported.
This significant development demonstrates a major shift in Tesla’s strategy for the Indian market. In 2022, negotiations stalled after the government denied Tesla’s demand for lower import taxes, which can sometimes cost as much as 100%. The two parties also had difficulty negotiating as Tesla aims to test the demand first through export, while the government wants the automaker to build the EVs locally.
Tesla seems to be not giving up on the Indian market, as demonstrated by CEO Elon Musk’s recent meeting with Indian Prime Minister Narendra Modi.
“I’m incredibly excited about the future of India. India has more promise than any large country in the world. He (PM Modi) really cares about India as he’s pushing us to make significant investments in India. I am a fan of Modi.”
CEO Elon Musk told the media
See Also:
- Indian Industry Minister invites Tesla to build a Gigafactory, highlighting innovation and technological prowess
- Indian Prime Minister meets Tesla CEO in the US, sparking rumors about Giga India
- Tesla to enter the Indian market with potential vendor base, per report
- Tesla is “serious” about building a production base in India, minister claims
- Tesla “Gigafactory India” meeting focuses on car incentives and battery production, per report
Tesla’s potential penetration of the Indian market will undoubtedly boost the country’s blooming industry and offer more options for customers. Fortune Business Insights reported that the Indian EV market had a year-on-year growth from just USD 1.45 billion valuation in 2021 to $3.21 billion in 2022.
Likewise, it will also accelerate Tesla’s global EV sales and aid its mission in leading the shift to a sustainable future.
