American leading automaker Tesla will send its delegates to have an important meeting with India’s commerce minister Piyush Goyal before the new month begins. The meeting will focus on the company’s plans to develop a Gigafactory to house the speculated $24,000 Tesla EV production, Reuters reports citing a source “with direct knowledge.”
Tesla to produce its first-ever $24,000 EV in India
As EV-a2z previously reported, Tesla plans to build its next Gigafactory in India with a target annual production capacity of 500,000 units. What’s more interesting is that these EVs will have a starting price of just $24,000.
Moreover, the Musk-led company is also planning to export EVs from the proposed Giga India.
“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
All that said, Tesla seems to concede that the Indian government would not adhere to its demand of reducing vehicle import taxes without the company establishing domestic production.
Tesla CEO Elon Musk previously met with India’s Prime Minister Narendra Modi, declaring that he really aims to invest in the world’s third-largest auto market one way or another.
For context, EVs only account for less than 2% of India’s overall vehicle sales.
Now, Tesla delegates are set to pursue another successful deal with the Indian government this month. As mentioned, they will meet the Indian commerce minister to discuss EV supply chain establishment and factory allotment.
See Also:
- Tesla, India already in talks to build a Gigafactory for EVs starting at ₹20 lakh
- 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’s move to penetrate the Indian market started a few years ago. However, it continuously failed to convince the government to let the company export its cars first to test demand. Now, it seems that discussions are progressing. That said, we may soon see a Gigafactory India in the coming years.
