The establishment of a facility and manufacturing center where electric vehicles would be produced and distributed throughout the Indo-Pacific region is apparently being discussed by Tesla and the Indian government.
According to the Times of India, which cited official sources, Tesla is now in conversations with the Indian government about an investment plan to set up a facility capable of producing over 500,000 electric vehicles annually.
According to the same article, they is looking at the prospect of using India as a manufacturing base to sell automobiles to countries in the Indo-Pacific area under the direction of billionaire Elon Musk.
The starting price of their automobiles, according to the report, will be 2 million rupees ($24,400.66). This price point is half a million rupees more than the Tata Nexon EV, which is presently the most popular electric vehicle in the nation, and more than twice as expensive as the MG Comet, which is now the most cheap electric vehicle in India.
When the government refused to lower import levies on its cars, Tesla’s efforts to join the Indian market last year were derailed. They was unable to enter the Indian market due to the nation’s current import levies, which may reach 100% on electric vehicles.
India showed a significant desire for Tesla to produce cars there, although the firm first planned to ship its vehicles there to gauge demand.
In a recent policy change, Tesla met with Indian authorities in May to discuss potential government subsidies for both the production of its vehicles and its batteries, according to Reuters. This suggests that Tesla is making new attempts to reach the Indian domestic market using a different strategy.
The Indian Commerce and Industry Ministry, which seeks to negotiate a win-win arrangement while guaranteeing fair competition between domestic industry and exports, is reportedly leading the negotiations this time.
The government is attempting to put together a “good deal” that considers Tesla’s participation in the Indian market from both perspectives.
Indian Prime Minister Narendra Modi asked Tesla to make a “significant investment” in the nation during a meeting with Elon Musk last month. Tesla, Musk, and the Ministry of Commerce and Industry did not respond to Reuters’ requests for comment as of the time of publication.
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