According to a media report, Tesla has engaged in a dialogue with the Government of India. The electric car maker has brought up an investment proposal for building up a car manufacturing unit in India. The annual capacity of this plant could be 5 lakh units. Also mentioned is a low cost EV starting at INR 20 lakh.
Tesla’s India plans
This is not the first time that the American carmaker has been in the news for setting up a presence in India. However, this time around, the company looks more keen. Tesla wants to not only make cars for the domestic market, but also make India as an export hub. The Tesla cars could be dispatched to the countries in the Indo-Pacific region.
According to sources, Tesla has bought in an ambitious plan and is likely to materialise this time around. From the Government’s side, the Commerce and Industry Ministry is leading the talks with the American carmaker. It was said that the government is also keen to have Tesla onboard.
Tesla Auto Parts and Electronics set-up in India
Apart from the manufacturing hub, Tesla is also in talks with the Union Government in regards to car parts and electronics supply chain. This will allow the company to get incentives and tax breaks as well.
That said, there is no official word on this matter.
Tesla compelled to build in India
The move comes after India refused to accept Tesla’s request to reduce import tax on cars last year. Currently, the taxes stand at as high as 100 per cent on CBUs costing above USD 40,000. Thus, India wanted Tesla to manufacture cars locally. But on the contrary, Tesla hinted at testing the waters first with imports. And thus it was a dead end and the discussions ended in a stalemate.
Also Read – Tesla is working on a new hatchback.