Tesla in Discussions to Establish Manufacturing Plant in India; Vehicle Prices Could Begin at Rs. 20 Lakh
According to a report by the Times of India, Tesla is currently engaged in discussions with the Indian government regarding the establishment of a Gigafactory in India. This factory would have the capability to produce 500,000 electric vehicles on an annual basis. Although Tesla has been contemplating the idea of setting up a plant in India for some time, it appears that progress is being made as the company, led by Elon Musk, explores the possibility of utilizing India as an export hub for the Indo-Pacific region.
Tesla’s India plans
Currently, Tesla’s largest factory is still in China, with a reported annual production capacity of nearly 750,000 units. However, technology companies such as Apple and Samsung have sought to set up factories in alternative countries to increase sales in other regions and to minimize production losses caused by the country’s strict restrictions. It seems that Tesla is ready to follow suit.
These talks come after Prime Minister Narendra Modi met the CEO of Tesla in the US last month. The Tesla Gigafactory in India, if it materializes, would allow the company to price its cars as low as Rs. 20 are missing according to the TOI report.
Supply chain requirements
Tesla, owned by Musk, wants to establish its own supply chain for auto parts in India, but the Indian government has asked Musk to review the existing ecosystem. ET reported that Musk held talks with Tesla US and Tesla India executives and inquired about possible incentives to set up a plant in India for the automaker and its partners. In addition, the company has also held talks with industry leaders, according to ET. At a recent meeting of the Indian Automobile Manufacturers (SIAM), Tesla expressed its desire to bring its own auto parts suppliers to the country.
