Top EV manufacturing company ‘Tesla’ is set to make its way to India and invest around $3 billion to construct its manufacturing plant in India. This comes within a year of Tesla CEO Elon Musk’s met with PM Narendra Modi last year.
Recently the Indian government reduced the import taxes and duties on EV companies, which made an agreement with the government regarding a potential investment of $500 million and started a manufacturing plant within the next 3 years
Read out full article to know about what Tesla is planning and how it is ready to make its way to India in the coming years.
Tesla In India
Tesla, EV manufacturing plant is set to make its way to India after it plans for around $3 billion investment in India. Tesla made this decision after the Indian government reduced the import taxes and duties for certain manufacturing companies that committed to $500 million in investment along with setting up manufacturing plants in India within the next 3 years.
Tesla company will send a team to look for suitable land for setting up the manufacturing plant. As per reports, the company is looking for land in the states of Maharashtra, Gujarat, and Tamilnadu which have many manufacturing plants. Tesla always had plans to come to India to sell its EVs but the Indian government wanted a commitment to a local manufacturing plant instead of importing from other countries which delayed its entry into the Indian Market.
Demand For EVs in India
Last year in June Tesla CEO Elon Musk met PM Narendra Modi for a possible investment in India and less than a year Tesla is ready to set up a manufacturing plant in India. China’s leading competition in the EV sector and slow down of the EV market in the US, made the Tesla Company boost its sales in India which encourages and boosts the EV sector.
The demand for EVs in India has seen high growth in recent years, as it is required to shift towards it which can counterpart the low resources of carbon fuel. As India plans to boost the sales of EV vehicles, the government has reduced the import taxes of EV companies which commits to possible investments in India.
India Vs. Global Ev Sector
The EV sector is seeing rapid growth in India where 2% of vehicles sold in 2023 among total vehicles are EVs. The Indian government plans to boost the sales of EVs with a target of 30% of EV sales among total vehicle sales by 2030.
Tesla manufacturing plant supports the local manufacturing market along with boosts in EV sales which is the main focus of the Indian government. As per reports, the company also plans to sell an EV for around a cost of $24,000.The
The EV market in China accounts for over 60% of global EV sales with huge competition from other countries in the EV sector. Even the price wars between the companies in China made them a global leader at present with manufacturing and sales in the EV sector.
Tesla which was previously the top company in EV sales has dropped to second place after the BYD company from China crossed Tesla in sales.
Conclusion
The Indian government also launched a production-based incentive scheme in 2021 which came into implementation this year. As part of the scheme, the Indian government allocated a budget of Rs28,938 crores ($ 3.1 billion) for the next 5 years to encourage local manufacturing and reduce the dependency on imports.
The recent update to Indian EV policy offers increased incentive schemes, reduced taxes, and cost-cutting in many possible ways looks like an attractive opportunity for Tesla to make its presence in India’s EV manufacturing sector. Tesla will send a unit to look for suitable manufacturing locations by the end of this April and reveal further details in the coming months regarding its plans and manufacturing. Tesla is also looking for partners to set up EV manufacturing plants and close reports suggest that tesla to partner with Reliance
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