Tesla EV Entry in India: A Natural Progression
New Delhi: According to Tesla CEO Elon Musk, providing Tesla electric automobiles in India will be a logical next step for his company, since India, like every other nation, should have electric cars.
In terms of population, India is currently the most populated nation on Earth. Just like every other nation, India ought to have electric vehicles. Offering Tesla electric cars in India is a logical next step, Elon Musk stated during an X Spaces meeting with Nicolai Tangen, the CEO of Norges Bank Investment Management.
One day, according to the wealthy CEO, “all vehicles will go electric and it is just a matter of time.”
Lately, Tesla has been working harder to increase its market share in india and constantly looking for a suitable site to establish a cutting-edge manufacturing facility.
According to reports, Tesla Inc. has received attractive land offers from the state governments of Maharashtra and Gujarat for the construction of an electric vehicle (EV) production facility, which represents a significant advancement in India’s electric mobility environment.
According to sources, the proposed factory would cost between $2 billion and $3 billion to build and would serve the domestic and foreign markets for Tesla’s electric cars.
The action follows India’s recent EV legislation, which offers incentives for establishing a manufacturing facility there. As a major EV producer worldwide, Tesla intends to build a strong manufacturing base in India.
In accordance with the government’s EV program, which seeks to establish India as a top location for the production of EVs outfitted with cutting-edge technology, a number of important goals are listed.
These include encouraging the uptake of cutting-edge EV technology by Indian customers, drawing investments from respectable international EV manufacturers, and supporting the nation’s Made in India programs.
In addition to encouraging manufacturers to achieve significant levels of domestic value addition (DVA), the policy asks for a minimum investment threshold of Rs 4150 crore (USD 500 million). By the third year of the manufacturing unit’s establishment, the government mandates that at least 25% of the parts used to make the vehicles must be sourced domestically. By the fifth year of this localization, it is anticipated that this percentage will reach 50%.action.
A five-year 15% customs levy will be applied to automobiles costing USD 35,000 or more if the firm constructs manufacturing facilities in India within three yearspolicy will set a cap on the overall number of EVs that can be imported, taking into account the amount invested. or, at most, Rs 6484 crore in value, whichever is less. According to the policy, a maximum of 40,000 EVs can be imported, with no more than 8,000 each year, if the investment surpasses USD 800 million. As part of its investment ambitions, Tesla aims to deploy a team of experts to search India for potential locations for the prospective production facility. Unused import limitations may be carried accto The Financial Times, which cited anAccording to an Indian official, the government will formally accordingept applications by the end of this month for the EV tariff reduction initiative, which will permit qualifying businesses to import up to 8,000 vehicles annually. Elon Musk, the CEO of Tesla, stated in June of last year that he intended to travel to India in 2024 and expressed confidence that the electric vehicle manufacturer would arrive in the country “as soon as humanly possible.”After meeting with Prime Minister Narendra Modi, who was then on a historic four-day State visit to the US, he had informed media in New York.
PM Modi extended an invitation to Musk to visit India.