In a long-awaited development, Tesla is poised to make its debut on Indian roads, marking a significant milestone for the electric vehicle (EV) enthusiasts.
Elon Musk’s Tesla cars are expected to grace the Indian landscape by January 2024, with the central government expediting approvals for its entry.
PMO Reviews EV Manufacturing and Tesla’s Entry
Recent discussions at the Prime Minister’s Office (PMO) centered around electric vehicle (EV) manufacturing in India, with a keen focus on Tesla’s investment proposal.
Following Musk’s meeting with Prime Minister Narendra Modi during his visit to the United States in June, various Union ministries, including commerce and industry, heavy industries, and electronics and information technology, have been actively engaged in dialogue regarding Tesla’s plans in the Indian market.
Tesla’s Ambitious Plans in India
Tesla’s Battery Storage Factory: Reports from September suggest that Tesla is contemplating the construction of a battery storage factory in India.
The company has already submitted a proposal to the government, aiming to bolster India’s battery storage capabilities with its “PowerWall” technology.
Building a Tesla Supply System: Elon Musk envisions the establishment of a Tesla supply system within India.
Union Commerce Minister Piyush Goyal disclosed that the EV giant plans to procure automobile components worth up to $1.9 billion from India in the current year.
Last year, Tesla had already sourced components worth $1 billion from India, and their target for this year is in the range of $1.7 billion to $1.9 billion.
Past Attempts and Present Progress
Previous Hurdles: Tesla had expressed its desire to enter the Indian market in 2022, but at that time, negotiations with the government did not reach a resolution.
The company had sought a reduction in import duties on fully assembled vehicles, advocating a decrease from 100% to 40%.
