Speculation surrounding Tesla’s long-awaited entry into the Indian market has escalated, fueled by the Indian government’s plans to modify the conditions of the advanced battery Production Linked Incentive (PLI) scheme.
This strategic alteration is expected to pave the way for the next phase of the scheme, with sources indicating that applications could be invited within the upcoming month.
Exclusive information obtained by CNBC-Awaz’s associate channel reveals that the government is poised to solicit bids for a substantial 20 GWh capacity, potentially extending the scheme’s scope to encompass 1 or 3 GWh plants.
Notably, Panasonic, a key battery supplier for Tesla, has displayed interest in this new government initiative, sparking conjecture about Tesla’s imminent presence in India.
Government’s Move as a Precursor to Welcoming Tesla to India
Observers perceive this government action as a concerted effort to lay the groundwork for Tesla’s entry into the Indian market.
CNBC-Awaz’s Rohan Singh, citing insider sources, reports that the Advanced Battery PLI modifications could transpire shortly, necessitating changes in the existing conditions.
As per these sources, applications for the subsequent phase of the scheme are anticipated to be summoned within the next month, accentuating the proactive stance taken by the government.
Inclusion of Smaller Plants and Existing Battery Facilities
Rohan further discloses that the government may widen the ambit of the scheme by encompassing smaller plants, specifically 1 or 3 GWh capacities, a departure from the existing requirement of a minimum 5 GWh capacity.
Furthermore, the scheme’s purview might extend to include existing battery plants, potentially with eased conditions on component localization.
Notably, Panasonic’s interest in the revised government scheme serves as a strong indicator, given its pivotal role as a battery supplier for Tesla.
Reshaping the Landscape: Previous Winners and Upcoming Prospects
In the prior phase of the scheme, numerous companies participated, with Reliance New Energy, Ola Electric, and Rajesh Export emerging as victorious bidders.
An interesting development occurred when Hyundai withdrew from the scheme, creating a vacancy of 20 GWh capacity that is now poised to be reinvigorated through the revised scheme’s upcoming phase.
As Tesla enthusiasts await an official announcement, the dynamic adjustments to the advanced battery PLI scheme appear to be a calculated maneuver to foster an environment conducive to Tesla’s much-anticipated entry into the Indian automotive market.