Tesla to choose India over China? Offers to set up EV factory, say reports

Almost a year after Tesla CEO Elon Musk practically dropped idea to launch the EV maker in India due to high import taxes, the company is back in the
...
Almost a year after Tesla CEO Elon Musk practically dropped idea to launch the EV maker in India due to high import taxes, the company is back in the reckoning with fresh offer.
Almost a year after Tesla CEO Elon Musk practically dropped idea to launch the EV maker in India due to high import taxes, the company is back in the reckoning with fresh offer.

World's largest electric vehicle manufacturer Tesla has renewed its efforts to enter the Indian EV market after its team of executives met government officials on Wednesday, May 17. According to reports, Tesla has offered to set up its electric vehicle manufacturing facility in the country in a fresh approach after previous talks ended in a deadlock over high taxes on imported cars. The latest development takes place almost a year after Tesla CEO Elon Musk had practically called off his India plans. The meeting assumes significance ahead of PM Narendra Modi's visit to the United States next month.

According to news agency PTI, Tesla's proposed India GigaFactory will be aimed to manufacture electric cars locally which will also be used for exports in Asian and other markets. However, there have been no talks on the location of the EV facility or the amount of investment Tesla is willing to put in.

Also check these Cars

Find more Cars
Tesla Model 3 (HT Auto photo)
UPCOMING
BatteryCapacity Icon82kWh Range Icon 555 km
₹ 70 - 90 Lakhs
View Details
Lexus Es (HT Auto photo)
Engine Icon2487.0 cc FuelType IconMultiple
₹ 56.55 - 62.19 Lakhs
Compare
View Offers
Bmw I4 (HT Auto photo)
BatteryCapacity Icon83.9 kWh Range Icon493 Km
₹ 69.90 Lakh
Compare
Volkswagen Id.7 (HT Auto photo)
UPCOMING
BatteryCapacity Icon77 kWh Range Icon621 Km
₹ 70 Lakhs
View Details
Tesla Model S (HT Auto photo)
UPCOMING
BatteryCapacity Icon75 kWh Range Icon396 km
₹70 Lakhs - 1 Cr
View Details
Hyundai Creta (HT Auto photo)
Engine Icon1497 cc FuelType IconMultiple
₹ 11 - 20.15 Lakhs
Compare
View Offers

Tesla's warming up to India again is seen as the EV maker's attempts to diversify beyond China, its largest market outside the US. Amid rising tension between the US and China, several carmakers, including Tesla, may be pushed to the point of finding new destination for EV business in future. Besides components, China is also key to global EV business for its battery manufacturing. India could be the alternative market where the government is eager to promote local manufacturing.

Earlier, the Centre had advised Tesla to set up a local manufacturing plant if it wanted to sell EVs in India. Union Minister Nitin Gadkari had said Tesla will be welcome to India if it manufactures EVs locally and not import them from China. Elon Musk had refused to take the offer saying, "Tesla will not put a manufacturing plant in any location where we are not allowed first to sell and service cars."

After hectic lobbying until early last year, Tesla's fresh move does not include talks of reducing import duties. According to sources quoted by news agency Reuters, Tesla executives who met officials from the PMO did not raise the matter in the meeting. India imposes 100% import duty on fully imported cars with CIF (Cost, Insurance and Freight) value of more than $40,000 and 70 per cent on those costing less than the amount.

First Published Date: 18 May 2023, 08:47 AM IST
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy
Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.