CEO of Tesla, Elon Musk, and the Indian Government have begun talks to bring Tesla to India by opening a car factory. Tesla initiated the meeting looking for an investment from the Government.
The plan was to produce up to 5 Lakh EVs yearly with a starting price of Rs. 20 Lakh after the investment comes through. Tesla plans on using India as one of the shipping hubs of the Indo-Pacific Region for the cars they plan on exporting.
The discussions are being handled by the Commerce and Industry Ministry and are aiming to put forward a fair deal, which benefits both parties. Initially, Tesla wasn’t too keen on making an investment into manufacturing in India until he met Mr. Modi last month.
After the said meeting, Elon Musk took a strong liking towards Modi and mentioned that the Indian PM played a major role in his decision due to his continuous persistence.
In the meeting last month between Elon Musk and Narendra Modi, Musk had expressed Modi’s liking for India and went on to say that he is contributing majorly into bringing Tesla to India. The only thing Musk is waiting for is the perfect time to hit the Indian market, and are planning to come “as soon as humanly possible.”
Once Tesla shot down the idea of coming to India, talks reopened in May when a team from Tesla came to India before Modi’s visit. Their plan of investing in India is a strategy seen by various International companies to broaden their vision in Asia from just China.
This proposal will be a huge milestone in India as it will be an International portal for the ‘Make in India’ tag. One company that has seen success through this is the tech giant, Apple. Not only them, it also brought a lot of investment to the country from their vendors as India is now a hub for exports.
Tesla aborted their decision to come to India as the Government was against reducing the import taxes to bring their cars down and instead was focused on getting the American company to manufacture their vehicles locally.
Thoughts On Tesla Coming To India
Tesla starting to manufacture and sell their vehicles in India would be a smart decision for the company as India has the fourth largest car market, with China, USA, and Japan ahead of us. India, last year, finished with approximately 3.9 million sales.
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