Tesla Scouting EV Plant Sites In Maha, TN, Guj
AUSTIN, TX – After India approved a new electric vehicle policy to attract investments in the EV space by global manufacturers, Tesla is reportedly sending a team this month to search for locations in the country for a $2-3 billion plant.
According to a report in The Financial Times on March 3, citing sources, the Elon Musk-run company will “send a team from the US by late April to study sites for the plant.”
The team will reportedly focus on Maharashtra, Gujarat, and Tamil Nadu which have EV infrastructure in place as well as ports which makes it easier for the company “to export cars.”
Tesla did not comment on the report.
In the new EV policy, the government has reduced the customs duty to 15 percent, with certain riders paving the way for Musk to enter the Indian market.
In the new EV scheme, the government mentioned that a minimum investment of Rs 4,150 crore (about $500 million) will be needed to set up manufacturing facilities and production started within three years and reach 25 percent DVA (domestic value addition) by three years and 50 percent DVA within 5 years at the maximum.
Pradeep Srivastava
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Tesla to explore sites in India for multibillion-dollar EV factory: FT
ReutersThu, 4 April 2024 at 2:13 AM GMT-7
(Reuters) -Tesla will send a team from the United States to India by late-April to study sites for a proposed $2 billion to $3 billion electric car plant, the Financial Times reported on Wednesday, citing people familiar with the matter.
The company’s reported push into India comes at a time when EV demand is slowing in its main markets of the U.S. and China while competition there is heating up. That caused Tesla to report a drop in its first-quarter deliveries and miss estimates.
The EV maker will focus on Indian states that have automotive hubs such as Maharashtra, Gujarat and Tamil Nadu, the report said.
Tesla did not immediately respond to a Reuters request for comment.
India last month lowered import taxes on certain EVs produced by automakers that commit to invest at least $500 million and start domestic manufacturing within three years, a move that was seen as bolstering Tesla’s plans for the market.
The company has been trying to enter India for years but New Delhi wanted a commitment to local manufacturing.
India’s EV market, small but growing, is dominated by domestic carmaker Tata Motors. EVs made up about 2% of the total car sales in India in 2023, with the government targeting 30% by 2030.
Tesla’s entry into the Indian market could spur more EV investments and benefit local auto parts makers, analysts have said.
Tesla officials have been in talks with government officials over the last year, with Musk meeting Prime Minister Narendra Modi in June.
The company said in July last year it was interested in building a factory in India to produce an EV priced at $24,000. It also called for lower taxes on more expensive models it wants to sell in India, Reuters has reported.
(Reporting by Chandni Shah and Akash Sriram in Bengaluru; Editing by Shilpi Majumdar)
April 9, 2024