Tesla is said to be working on establishing a factory capable of rolling out five lakh units per year in India
Tesla, the famed American electric carmaker, is looking at the possibility of establishing a manufacturing unit in India and its CEO, Elon Musk, has started discussions over it. The plant is proposed to have a capacity of rolling out five lakh EVs per annum. Various models appear to be in the pipeline with the entry-level offering likely carrying a price tag of Rs. 20 lakh.
The production unit will also be used to ship the vehicles to foreign markets mainly in the Indo-Pacific region, according to a report. It stems on the back of Musk convening with Indian Prime Minister Narendra Modi in recent weeks on his visit to the United States. Previously, Tesla made several attempts to set up a business in India but nothing has come to fruition yet.
The report further said that Tesla has come up with an ambitious plan and Musk told already that Modi is pushing the brand to make significant investments locally as part of his Make In India plan. Tesla recommenced the talks with the Indian government a couple of months ago when a team of executives paid a visit to India before Modi’s visit to the US.
It must be noted that Tesla gave up on the plans to sell cars in India last year after it was denied any special tax incentives from the government for importing cars. The central is keen on insisting Tesla establish a production plant locally. The country ended last year with a total volume sales of 3.9 million units as it was the fourth largest in the world.
Tesla has a diverse portfolio of cars sold in global models as it includes Model 3, Model X, Model Y and Model S while the deliveries of the Cybertruck are expected to begin in the coming months. The Model 3 electric sedan sits at the entry point with a price tag of $42,990 (Rs. 35.30 lakh) while the Model X is estimated to cost around $106,490 (Rs. 87.44 lakh).
With the premium EV market steadily growing, Tesla could make a strong statement upon its arrival and its official plans are yet to be revealed.