The Government of India revised its EV policy recently, which is now attracting foreign investors to India. Now, media reports suggest that Tesla could be planning to scout locations in India to set up an electric vehicle manufacturing plant. Reports reveal that executives from Tesla will be arriving to India by the end of April to check out location where the brand could be planning to set up a USD 3 Billion EV production plant.
Tesla could be looking to set up a manufacturing plant where automative plants already exist. This will help the brand with supply chain management in addition to the existing component vendors that the brand might need to produce cars. Furthermore, the factories are likely to be in proximity of sea ports if the company plans to export its vehicles to other countries.
Therefore, it is being suggested that Tesla could be scouting sites in Maharashtra, Gujarat and Tamil Nadu. The production plant could have a maximum capacity of 500,000 units per annum. This is likely to allow the brand to export the locally produced vehicle to markets such as the Europe, Middle-East, Asia, and Africa. Tesla is also likely to set-up a battery manufacturing plant in India at a later stage. In addition to this, Tesla could also be scouting places in the Delhi-NCR region to set up its corporate office in the country.
Sources also suggest that Tesla could be planning to make a small electric vehicle called the Model 2 specifically for the Indian market. The Model 2 is likely to be produced from Tesla’s plant in India for global exports. The brand is also likely to sell the car in the Indian market with a competitive price tag thanks to its localisation. Expect the Tesla Model 2 to come with a price tag of around USD 30,000.
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