- Tuesday, November 26, 2024
India’s Times of India reported that the US EV giant is looking to produce 500,000 vehicles in India a year.
By: Shubham Ghosh
US ELECTRIC vehicle (EV) manufacturer Tesla is in talks with the Indian government to establish a factory capable of producing around 500,000 EVs a year, India’s Times of India reported citing government sources.
The company, which is led by billionaire Elon Musk, is also aiming to make India an export base to ship vehicles to countries in the Indo-Pacific, the report added.
It was also said that the starting price for the vehicles will be Rs 2,000,000 (£18,639), which is more than double of MG Comet, India’s cheapest EV, and half a million expensive than Tata Nexon EV, the country’s top-selling EV.
The development comes less than a month after Musk met Indian prime minister Narendra Modi in New York when the Indian leader was on a state visit to the US. Praising India, the Tesla boss called the meeting “excellent” and stressed that Modi had spoken passionately about his company investing in the South Asian nation.
Last year, Tesla’s plans to enter India hit a roadblock after the Modi government refused to reduce import taxes on its vehicles. India levies as much as 100 per cent import taxes on EVs that cost over $40,000.
While India expressed interest in local Tesla manufacturing, the company intends to initially export vehicles to assess demand before considering local production.
Reuters had reported that Tesla engaged in discussions with officials in May about incentives provided by the government for its cars and battery manufacturing as part of its renewed efforts to enter the domestic market.
The Indian commerce and industry ministry is leading the talks this time and is hopeful about a “good deal”, while maintaining a level-playing field as the discussions now involve both local manufacturing and exports, the local report said.
