Bloomberg reported, citing people familiar with the matter,IndiaAndTesla(Tesla) close to agreement to open Tesla imports from next yearElectric CarAnd set up a factory in India within two years.
Tesla has not directly exported electric vehicles to India due to high tariffs. Sources have revealed that when Tesla’s future electric vehicles produced in India are launched, the retail price could be below $20,000.
India is said to be considering reducing import duties on electric vehicles for five years if multinational automakers commit to setting up factories there.
People familiar with the matter told Bloomberg that both parties are likely to formally announce the news at the Gujarat Investment Summit in January next year. Another person familiar with the matter said Prime Minister Narendra Modi’s home state Gujarat, Maharashtra and Tamil Nadu are among the places being considered for setting up factories, as they already have mature electric vehicle and export ecosystems. There are mechanisms. People familiar with the matter also stressed that no final decision has been made and plans could still change.
According to people familiar with the matter, Tesla initially committed to invest at least US$2 billion in factory construction and actively purchased local auto parts worth up to US$15 billion. Apart from this, Tesla will also produce batteries in India to reduce costs.
If it can enter the world’s most populous country, it will not only fill the lack of middle-class consumers, but also be of great help to Tesla. The Modi government is pushing to expand domestic electric vehicle manufacturing and encourage faster adoption of green energy transportation.
However, according to a report by BloombergNEF, the Indian electric vehicle market has still not taken off, with battery-powered vehicles accounting for only 1.3% of passenger vehicle sales last year. Potential buyers are hesitant due to the high cost of electric vehicles and small charging stations.
Cars (TagstoTranslate) Electric Cars (T) Tesla (T) India
