New Delhi: Tesla, the prominent American electric car manufacturer, is advancing its plans to enter the Indian market. Reports suggest that Tesla will dispatch a team to India this month to scout for suitable land to establish its manufacturing plant. This move follows Tesla's recent announcement of a $2-3 billion investment for the new plant.
India's recent policy shift aimed at promoting electric vehicle production by offering import duty concessions to companies investing at least $500 million and engaging in local manufacturing has encouraged Tesla to seriously consider establishing a manufacturing plant in the country. The company, facing stiff competition in the United States and China, is keen on expanding its presence in other markets.
While Tesla is still deliberating over the location for its new plant, states like Maharashtra, Gujarat, and Tamil Nadu, known for their automotive hubs, are under consideration. Beyond manufacturing, Tesla aims to introduce its most affordable electric car priced at $24,000 (approximately Rs 20 lakh) specifically tailored for the Indian market. The company has also advocated for tax exemptions on high-end models.
Recently, Bloomberg reported that India is nearing finalization of an agreement with Tesla, allowing the company to import and sell its electric vehicles in the country starting next year. Additionally, Tesla will have the option to establish a factory within two years.
The anticipation surrounding Tesla's entry into India was further fueled by a meeting between Tesla CEO Elon Musk and Prime Minister Narendra Modi during PM Modi's US visit. Elon Musk expressed intentions to launch Tesla cars in India and establish a plant. Last year, Musk had mentioned considering a "significant investment" in India by 2024.
The electric vehicle market in India is on an upward trajectory, with demand steadily rising. In 2021, electric vehicles accounted for about 1.3% of total passenger vehicle sales in India, a figure expected to further increase this year. Shashank Srivastava, Senior Executive Officer of Sales and Marketing at Maruti Suzuki India Limited, predicts that the market share of electric vehicles could reach 18-20%, up from the current 2.2%.
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