It can be a matter of happiness for India that Tesla Cars are coming to India. Tesla is a big American electric car manufacturer, Tesla Cars is going to enter the Indian market. According to the new plan for Tesla Cars, Tesla is ready to make an initial investment of about two million dollars in India. With this, there is a plan to increase 15 billion dollars to buy auto parts from India.
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Elon Musk’s Tesla and India are reaching a deal that will allow the automaker to ship its electric cars to India in 2024 and set up a factory within two years, according to a Bloomberg report on Monday.
Tesla car plans in India
According to Bloomberg News, the Indian government appears to be close to finalizing an agreement with Tesla. The Indian government is going to allow the import of American electric vehicles into the Indian market next year, along with this, American electric vehicle manufacturer Tesla is preparing to open a factory locally.
According to a report, an official announcement regarding this is expected to be made at the Gujarat Global Summit to be held in January. This includes the states of Gujarat, Maharashtra, and Tamil Nadu considering their well-established conditions for electric vehicles and exports.
Tesla Cars Investment in the Indian Market
It is expected that in 2024, Tesla is going to invest approximately two million dollars in the Indian market, in this sequence it is planned to increase up to 15 billion dollars on the purchase of auto parts from India.
Apart from this, according to Bloomberg sources, American automobile manufacturer Tesla also aims to manufacture batteries in India to reduce costs. However, no confirmation has been made yet. It may be possible that this may not be done in the future.
Elon Musk, CEO of Tesla Company, has earlier discussed this time that significant investment can be made in India in 2024.
| Agreement Status | Close to finalizing an agreement for Tesla to import electric vehicles and establish a local factory in India. |
| Expected Announcement | Anticipated at the Vibrant Gujarat Global Summit in January. |
| Considered States | Gujarat, Maharashtra, and Tamil Nadu due to established ecosystems for electric vehicles and exports. |
| Tesla’s Investment | Initial minimum investment of approximately $2 billion for the plant. |
| Auto Parts Purchase | Plans to escalate purchases of auto parts from India, potentially reaching up to $15 billion. |
| Battery Manufacturing | Tesla aims to manufacture some batteries within India to reduce costs. |
| CEO Elon Musk’s Statement | Elon Musk had previously stated plans for a “significant investment” in India, with a visit in 2024. |
| Current Tesla Operations | Factories in the US, China, and Germany. |
| India’s EV Market | Limited growth, constituting 1.3% of total passenger vehicle sales last year. |
| Challenges in India’s EV Market | High upfront cost of electric cars and insufficient charging infrastructure. |
| Tesla’s Import Situation in India | Presently refrains from direct imports due to high import tariffs. |
| Prospect of Local Manufacturing | Holds promise for cost reduction, potentially pricing locally produced Tesla cars at $20,000. |
| Union Minister Piyush Goyal’s Statement | Tesla plans to nearly double its auto parts purchases from India to $1.9 billion this year. |
| Negotiation Resumption Date | Negotiations resumed in May after a year-long impasse. |
| Previous Challenges for Tesla in India | High import taxes and EV policies led to a previous bid’s non-materialization. |
Tesla Intends to Enter India
Tesla is sensing a substantial electric car need in India. And its demand is going to increase further in the coming times.
However, if seen at present, Tesla is operating its factories in America, China, and Germany. There are plans to set up a separate factory in India. This is going to be done with the active efforts of the Government of India under the leadership of Prime Minister Narendra Modi.
Apart from this, according to Bloomberg, despite the efforts of the government, the electric market in India is quite limited. Electric vehicles contributed 1.3% to total passenger vehicle sales last year.
The main reason for this is the high prices of electric vehicles and the lack of adequate charging stations in the Indian market.
As a result of high import duties, Tesla currently avoids directly importing cars into India. And due to this, there is a possibility that its cost is going to reduce in the Indian market. It is expected that its price will be around $20,000 (16 lakhs).
Electric vehicles are going to be the future of India’s auto world in the coming times.
