Tesla team to visit India to identify car plant location

A team from Tesla is scheduled to visit India this month to identify locations for a potential electric car manufacturing plant.

The proposed investment will range between $2 billion to $3 billion (approximately Rs 16,700 crore to Rs 25,000 crore), said Reuters, quoting Financial Times.

By late April, the company plans to dispatch a team from the United States to evaluate potential sites for the manufacturing plant, with particular attention directed towards states boasting established automotive hubs like Maharashtra, Gujarat, and Tamil Nadu.

India recently implemented a reduction in import tariffs specifically targeting electric vehicles, provided that the manufacturers commit to substantial investments of at least $500 million (approx Rs 4,150 crore) and commence local production within a three-year timeframe.

In July last year, Elon Musk-owned Tesla expressed its keen interest in constructing a manufacturing facility in India, aimed at producing an electric vehicle priced at $24,000. It also advocated for reduced taxes on higher-end models that it intends to introduce to the Indian market.

Musk has been trying to penetrate the Indian market for several years without any breakthrough, with New Delhi consistently seeking assurances regarding the establishment of local manufacturing facilities as a precondition for entry.

Over the past year, Tesla representatives have engaged in discussions with government officials, culminating in a significant meeting between Musk and Prime Minister Narendra Modi in June.

Tesla's purported foray into the Indian market arrives amid a challenging landscape, where demand for electric vehicles is showing signs of deceleration.

Furthermore, intensified competition in Tesla's key markets of the US and China has resulted in the company experiencing a decline in first-quarter deliveries, falling short of projected estimates.