Tesla, a front-runner in electric vehicles (EVs), is making a two-pronged push for the Indian market. The company is currently producing right-hand drive versions of its existing models at its Berlin factory for export to India later in 2024.
Secondly, Tesla plans to establish a large-scale manufacturing facility in India. A team will be sent in April to scout locations, focusing on coastal states like Gujarat, Maharashtra, and Tamil Nadu. This move aligns with the Indian government’s recent EV policy, which offers reduced import duties for companies investing in domestic production.
Tesla’s potential investment could be substantial, reaching $15 billion in total. This includes a $3 billion initial investment for a new, smaller car model produced in India, along with a possible $10 billion from partners to support manufacturing, and an additional $15 billion in the battery supply chain.
This initiative holds significant promise for India. Some believe it could be a turning point similar to the “Suzuki moment” that kickstarted India’s motorcycle industry. Additionally, the company’s presence could elevate India’s manufacturing capabilities, mirroring the impact of Apple’s entry into the smartphone sector.
While Tesla is initially exporting existing models, its long-term strategy involves producing a new, potentially more affordable electric car specifically designed for the Indian market. This, along with the potential megafactory, could significantly boost India’s EV ecosystem and manufacturing prowess.
Reference- Tesla website, Hindustan Times, Economic Times, Moneycontrol, Inside EVs, Autocar