According to persons familiar with the Indian government’s thinking, India and Tesla Inc. are nearing an agreement that would permit the US manufacturer to transport its electric vehicles to the nation starting next year and establish a facility within two years.Tesla is anticipated to invest a minimum of $2 billion for the factory as part of the proposed arrangement, with the intention of increasing auto parts imports from India to as much as $15 billion.
In an effort to cut expenses, the US manufacturer also plans to produce some batteries in India, according to Bloomberg sources.The states of Tamil Nadu, Maharashtra, and Gujarat are being considered for an official announcement at the Vibrant Gujarat Global Summit in January, the report said, because of their established ecosystems for exporting and selling electric vehicles.
Elon Musk, the CEO of Tesla, stated in June that the company expects to make a “significant investment” in India, and he hopes to travel there in 2024. Regarding the same, no formal statement has been made thus far.
Just 1.3% of all passenger cars sold in 2017 were electric. This is due to the high cost of electric vehicles and the dearth of charging infrastructure.Because of the high taxes, Tesla does not yet import automobiles directly into India. However, the initial locally produced vehicles may only cost $20,000 when they go on sale.
Union Minister Piyush Goyal paid a visit to the Tesla factory in Fremont last week, where he was supposed to have a meeting with Elon Musk. Musk’s health prevented the meeting from taking place, but the billionaire assured the minister that they would speak soon. At the Tesla factory, Goyal met with Indian experts and engineers as well as the country’s senior leadership.
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