The relationship between India and the Tesla is making progress slowly, but a new report has surfaced that states that Tesla is looking to produce an made-in-India EV which would be priced around Rs. 17 Lakh.
Tesla is reportedly edging closer to directly selling its cars in the Indian market, with plans to import vehicles from overseas next year before establishing a local production unit within the next 24 months, according to sources. The electric vehicle (EV) giant, known for being a leading zero-emission passenger vehicle seller in various global markets, is expected to make an official announcement regarding its market entry at the Vibrant Gujarat Global Summit in the first month of 2024.
Potential locations for a future manufacturing facility include states like Tamil Nadu, Maharashtra, and Gujarat, given their existing resource bases and status as hubs for both global and domestic automakers. Sources suggest that Tesla is looking to invest a minimum of USD 2 billion in establishing a manufacturing factory in India, with plans to locally source components worth around USD 15 billion. In a bid to achieve economies of scale and ensure competitive pricing, Tesla is also exploring the possibility of producing battery packs and related components locally in the future.
Although no official confirmation has been released, there has been a notable improvement in the relationship between Tesla and local authorities in recent months. Elon Musk, the CEO of Tesla, hinted in mid-2023 about a significant upcoming investment in India. Tesla has been rapidly expanding its global presence while simultaneously setting up new manufacturing facilities.
As of now, Tesla produces electric vehicles in the United States, China, and Germany. While the Indian EV market has shown promise, it still has a considerable distance to cover in capturing a broad customer base. Over the next three years, substantial activity is anticipated in the EV space, with mainstream brands like Maruti Suzuki, Hyundai, Tata, Mahindra, Honda, Kia, and Toyota planning to launch new models. In the luxury segment, several players have already introduced their EVs shortly after their global debuts, and the reception among buyers has been notably positive. Reports suggest that the initial Tesla vehicles manufactured in India could be priced at approximately USD 20,000 (Rs. 16.67 Lakh).