32.9 C
New York

Did Musk just confirm Tesla’s entry into India’s EV market?

Published:

Tesla in India soon? Elon Musk, the CEO of Tesla Motors, seems to have dropped a big hint about the electric car marker’s entry into India. According to a Reuters report, Elon Musk has said, “The natural progression is to provide Tesla electric vehicles in India.”

Musk’s statement is being seen as a big sign of interest in Indian markets.

Interestingly, a recent ANI report has said that Tesla is ramping up efforts to establish a cutting-edge manufacturing plant in India.

The state governments of Maharashtra and Gujarat have offered prime land to Tesla, the report said.

The proposed plant, with an investment of $2-3 billion, aims to cater to both domestic and international demand for Tesla’s EVs.

This initiative aligns with India’s new EV policy, focusing on sustainable transportation and carbon emission reduction.

Also Read | Are you sure you own an SUV? Just a third of car models branded & sold as Sports Utility Vehicles meet official definition

The government scheme aims to attract global EV manufacturers, promote advanced technology adoption, and boost the Make in India initiative. Manufacturers are required to invest a minimum of Rs 4150 crore and achieve significant domestic value addition.

The government mandates that 25% of parts should be sourced locally by the third year, increasing to 50% by the fifth year.

For vehicles valued at $35,000 or more, a 15% customs duty will be imposed for five years if manufacturers establish facilities in India within three years.

Tesla is scouting locations in India for the manufacturing facility, considering factors like infrastructure and logistics, said the ANI report. The company has started production of right-hand drive models in Germany for export to India, expected to enter the market later this year.

Also Read |India’s Mission 2047: How India aims to become a developed economy – high speed expressways, electric mobility, digital payments & more

Tesla India Motor and Energy Pvt Ltd has leased office space in Pune, marking its first official presence in the country.

Research firm Counterpoint forecasts a 66% increase in electric vehicle sales in India this year, following a nearly doubled growth in 2023.

Related articles

Recent articles

spot_img