All You Need to Know About Tesla's Hunt for Land in India for Billion-Dollar Factory

 

Tesla plans to send a team from the United States to India by late April to scout locations for a proposed electric car plant valued at $2 billion to $3 billion (approximately Rs. 16,691 crore to Rs. 25,036 crore), as reported by the Financial Times. 

The move into India coincides with a slowdown in electric vehicle demand in Tesla's primary markets of the US and China, leading to a decline in first-quarter deliveries and missing estimates. 

The company will concentrate on Indian states with automotive clusters like Maharashtra, Gujarat, and Tamil Nadu. In response to a Reuters inquiry, Tesla has not yet commented. India recently reduced import duties on specific EVs made by manufacturers committing to invest a minimum of $500 million (about Rs. 4,172 crore) and commencing local production within three years, seen as supporting Tesla's Indian plans. 

While Tata Motors dominates India's small but growing EV market, the government aims for EVs to represent 30 percent of total car sales by 2030. Analysts anticipate Tesla's entry could encourage further EV investments and benefit local auto parts suppliers. Tesla has engaged in discussions with government representatives over the past year, including a meeting between Musk and Prime Minister Narendra Modi in June. 

Last July, the company expressed interest in establishing a factory in India to manufacture a $24,000 (Rs. 20 lakh) EV, and called for reduced taxes on higher-priced models intended for the Indian market, according to Reuters.