Reports state Tesla in talks with India to Establish Factory with up to 500,000 annual capacity

New Delhi, 14th July 2023: Tesla has began talks with the Indian government about establishing a car factory in the nation with an annual capacity of up to 500,000 electric vehicles.

The vehicles’ costs will begin at 2 million rupees ($24,400.66), according to the newspaper.

According to the article by Times Of India, which cited government sources, the billionaire Elon Musk-led company is also considering utilising India as an export hub as it aims to transport automobiles to countries in the Indo-Pacific area.

Tesla did not react quickly to Reuters’ request for comment.

The conversations with the Indian government indicate a shift in strategy for the American electric vehicle manufacturer.

Last year, talks came to a halt when the Indian government refused to agree to Tesla’s proposal for lower import duties on automobiles, which may be as high as 100%. Tesla was interested in manufacturing automobiles in India, but the corporation stated that it needed to test the strength of demand first.

Tesla held negotiations in May with officials about government incentives for car and battery manufacture, according to Reuters, in renewed efforts to enter the domestic market with a change of posture.

During a meeting with Musk last month, Indian Prime Minister Narendra Modi pressed Musk to make a “significant investment” in India.
Musk said after meeting Modi that India has a significant potential for a sustainable energy future, including solar power, stationary battery packs, and electric vehicles, and that he aims to introduce SpaceX’s Starlink satellite internet service to the country as well.