Tesla is in Talks with India to Setup a New Factory in the Country: 5,00,000 Annual Capacity
The American EV manufacturer, Tesla plans to set up a new factory unit in India as per reports. The company is already in talks with the government of India and plans of setting up a factory that will produce a total of 5,00,000 units of EVs annually.
Here’s more about it.
Tesla to Setup up a New Factory Unit in India
Even if Tesla had plans of setting up a local manufacturing unit in India last year, the company initially wanted to import its EV models to the country to exactly determine the potential the company has within the country. However, with the huge import taxes which may go upto 100%, it was absolutely not possible to introduce the EVs to the Indian market as the high price may severely affect how Indian customers would approach the company’s vehicles.
After the meeting with officials regarding the subsidies that would be offered for electric car and battery manufacturing and also after the recent meeting between Elon Musk and Narendra Modi, the CEO of Tesla and Indian Prime Minister, Tesla has almost confirmed its plan to set up a new factory in India. Musk stated, “I am confident that Tesla will be in India and will do so as soon as humanly possible”.
The factory unit Tesla plans to set up in India will be huge as it would be capable of manufacturing 5,00,000 EVs a year. The EV models that will be manufactured in India would likely start at Rs. 20 lakhs and the plant will also be serving as an export base for the company. The company hopes to export the EVs manufactured in India to countries of the Indo-Pacific region.
Just to add, Musk after his meeting with Modi had also mentioned his likely plan to introduce the Starlink satellite internet service in India too.
