Tesla is exploring locations for its manufacturing plant with its India entry
Tesla is finally making its way into the Indian market. Elon Musk-led EV maker, according to UK’s Financial Times after the reduction in import taxes, is exploring potential locations to build its manufacturing plant. After the new reduced taxes on EVs, carmakers are committing to investing over Rs. 4,150 Crore in the upcoming three-year window to boost EV sales and manufacturing in India.
Tesla’s India Entry
According to the report, Tesla’s US headquarters team is set to arrive in India by late April to explore a potential location for its state-of-the-art manufacturing facility. Notable locations are in states such as Maharashtra, Gujarat, and Tamil Nadu, especially for their ports linked, making it easier for the EV giant to import and make cars in the same state.
The strategic move by the company is allegedly because of the slowing EV demand globally and growing competition from many new and established players in the industry. After the dip in the Q1 deliveries, both the US and China have seen aggressive price wars between Tesla and the competition. Reports also suggest the EV giant may also build its infamous ‘Gigafactory’ battery plant that supplies the car’s essential component. The new battery plant will ease the company’s burden to also import batteries from other countries such as Texas, California, Shanghai, and Berlin.
India’s Strategic Move To Boost Make In India Movement
Elon Musk, CEO of Tesla has been making countless efforts to enter the Indian automotive space for many years. After many discussions with the government and meeting with the Prime Minister, Musk assured the EV maker will make its way to India soon. After the deduction in the import tax on EVs, it can be seen clearly that Tesla now has the perfect timing to make its electric cars in India with a new $2-$5 billion investment. The government also sees that as an opportunity as this huge investment might lead them to victory in the upcoming 2024 Lok Sabha Elections.
Tesla Motors has a keen interest in building a manufacturing facility in India, committing to make a domestic production facility in India as per the Modi government to boost the Make-In-India scheme. With this huge investment, India also sees new job and business opportunities in terms of auto part business, and servicing centres opening in the country. The localization in India aims to offer more accessibility to global tech making its way in India and offering more competition, and value for money to the customers.
Also read: Why Automotive Brands Prefer Hybrid Vehicles More Than EVs
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