Tesla Explores Factory Options in India
Elon Musk’s Push for Local Tax Exemption
- Elon Musk had previously pleaded with the Indian government to provide its vehicles with a local tax exemption.
- India has long encouraged Tesla to establish a factory in the country.
- Tesla could build its $25,000 EV in India and export it globally.
Tesla’s Plans for India
Tesla is considering establishing a factory in India and will send a team from the U.S. to explore potential sites.
Interest in Indian Market
The American carmaker and EV leader has shown interest in entering the Indian market. In 2022, Elon Musk requested the Indian government to exempt Tesla vehicles from high local tariffs on imported vehicles. However, the government encouraged Tesla to set up a local factory instead.
Potential Factory Locations
Sources indicate that Tesla will send a team to study potential sites for an electric vehicle plant in India. The investment could range from $2 billion to $3 billion, with Maharashtra, Gujarat, and Tamil Nadu being potential states of interest due to their proximity to ports for global exports.
Government Support
Indian Prime Minister Narendra Modi plans to provide subsidies to promote local manufacturing, especially in critical industries like electric vehicles.
Exporting Affordable EVs
Tesla has expressed interest in building its promised $25,000 EV in India for export to various regions. The company aims to expand its presence in India as soon as possible.