Tesla, the US-based electric car manufacturer was keen to enter the Indian market and it got a green signal after the recent approval of a new EV policy by the Government of India which allowed the import of 8,000 EVs every year at a lower 15% import duty. This policy comes with the pre-set condition that the company will have to invest a minimum of Rs. 4,150 crore in the country to set up a new EV manufacturing facility with a minimum of 25% localization. As per the latest media reports, the production of India-spec right-hand drive models has begun at Tesla’s Germany plant and is expected to launch in India by the end of this year.
While the exact model to be launched in the domestic market is unknown, it is important to note that the US-based EV Company produces the Model Y at its Germany-based facility. The first lot of Tesla cars which will arrive in India will make use of the aforementioned new EV policy allowing imports of up to 8,000 units a year at a lower 15% import duty. Moreover, a specialized team of Tesla executives will arrive in India by April end to search for locations to set up the aforementioned USD 3 billion factory.
The report further highlighted that the states with existing automotive manufacturing hubs will be focused which includes Maharashtra, Gujarat and Tamil Nadu. In addition to this, the electric car manufacturer will also scout for locations around the national capital Delhi, preferably the NCR (National Capital Region) territory. However, the former states will be given priority due to their locational advantage and proximity to the ports which will aid Tesla’s future export plans.
The electric car giant Tesla is planning to launch a new affordable small electric car for India which will go by the name ‘Model 2’. This new EV will be manufactured at the company’s upcoming India-based manufacturing facility for local sales as well as exports to other markets like Southeast Asia, the Gulf, Africa and southern as well as eastern Europe. The Model 2 is expected to be priced under $30,000.
In addition to this, the manufacturing facility in India will have a maximum production capacity of 5,00,000 units per annum. Reportedly, Tesla could also evaluate the possibilities of setting up a new battery-specific plant at a later stage.
The Chinese EV manufacturer BYD is the closest rival of Tesla in terms of global sales. It sells models like Atto3 and recently launched Seal EV in India.
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