According to the source, Tesla has expressed interest in developing a plant in India that would manufacture affordable electric vehicles (EVs) for both the domestic market and export. The company has also stated that the plant would produce the new vehicle.
The conversations mark a remarkable turnabout for the corporation after attempts last year to lower import levies on EVs exported to India were thwarted by demands from government officials to commit to locally manufacturing automobiles.
The negotiations with the commerce minister would be at the highest level between Tesla and the Indian government since Elon Musk met with Prime Minister Narendra Modi in June and declared his intention to make a sizable investment in the nation, Haryana GK – Haryana GK In Hindi – Haryana GK Question 2023.
Tesla will speak with India’s commerce minister on its new $24,000 vehicle factory plan
In conversations regarding a future Indian plant, EV Tesla reps reportedly mentioned a 2 million rupee ($24,000) vehicle that would be 25% less expensive than its current entry-level Model 3 sedan, which costs just over $32,200 in China.
The Times of India newspaper stated earlier this month that the new Tesla vehicle’s target price is $24,000.
A request for comment from Tesla was not immediately complied with.
In India, the third-largest auto market in the world, electric vehicle sales now make up less than 2% of all vehicle sales.
Tesla executives visited India in May, according to Reuters, and spoke with government representatives about setting up a base for manufacturing cars and batteries there.
Resumption of discussions with Indian government representatives in New Delhi is planned for this month, according to two persons with knowledge of the talks who declined to be identified because the conversations are ongoing in confidence.
Tesla will speak with India
The first person stated that as part of that, Tesla representatives are scheduled to meet with Indian Commerce Minister Piyush Goyal, and conversations are anticipated to center on creating an EV supply chain and talking about land allocation for a factory.
Since the beginning of the year, Tesla has aggressively discounted its current models, and Musk has consistently stated that lowering the price of EVs significantly will be essential to the company’s long-term viability.
Tesla has stated that its next-generation car platform will reduce production costs by 50% and that various models, including an autonomous “robotaxi,” might be created from it without providing any further information regarding these upcoming vehicles’ specifications or prices.
The Tesla factory that is currently being built in Mexico will make cars on that high-volume, lower-cost platform, which the firm has stated it will also use in other plants.
Tesla presently manufactures EVs in Texas and California. It has facilities in Shanghai and Berlin outside of North America.
With about 40% of the automaker’s total global capacity located in its main factory, Shanghai, Tesla is the largest. There are plans to increase capacity there, but they need regulatory approval first.
Nikunj Ohri and Shivangi Acharya contributed additional reporting, and Kevin Krolicki and Kirsten Donovan edited the piece.