India is nearing a deal with Tesla Inc. that will allow the American automaker to ship its electric cars to the country starting next year and set up a factory within two years, according to people familiar with the Indian government’s thinking.
But some announcement may come Vibrant Gujarat Global SummitIn January, the person said, speaking on condition of anonymity because the discussions are private. Gujarat, which is Prime Minister Narendra Modi’s home base, Maharashtra and Tamil Nadu are under consideration as they already have well-established ecosystems.electric vehicles And exports, another person said.
Tesla will make an initial minimum investment in any plant of about $2 billion, one of the people said, and will consider increasing purchases of auto parts from the country to $15 billion. The American automaker will also try to make some batteries in India to reduce costs, the person said.
No final decisions have been made and plans are subject to change, the people said. Tesla Chief Executive Officer Elon Musk had said in June that Tesla plans to make “significant investments” in India and intends to arrive here in 2024.
Representatives of India’s Ministry of Heavy Industries, which oversees the automobile sector, and the ministries of Finance, Commerce and Industry did not respond to requests for comment. Tesla also did not respond to a request for comment.
Entering the world’s most populous country, where demand for electric vehicles is growing among aspirational middle-class consumers, would be a boon for Tesla, which currently has factories in the US, China and Germany. The Modi government is pushing to increase domestic manufacturing of EVs and encourage more rapid adoption of clean transportation.
Despite those efforts, Indian EV market According to BloombergNEF, the share of battery-powered cars in total passenger vehicles sold last year was only 1.3%, which has not increased further. The high upfront cost of electric cars and the lack of charging stations are making buyers hesitant to make the switch.
Tesla does not import cars directly into India due to high tariffs. Some said its first locally made cars could have a retail price of less than $20,000 when they go on sale.
Trade Minister Piyush Goyal, who visited Tesla’s plant in Fremont, California earlier this month, had said in September that Tesla planned to almost double its purchases of auto parts from India this year to $1.9 billion. Is. He had said at an event in New Delhi at that time that the electric car maker had ordered parts worth $1 billion from the country last year.
Tesla and India, the world’s third-largest automobile market, resumed talks in May after a year-long standoff. Musk has criticized India’s high import taxes and its EV policies, and India, in turn, has advised Tesla not to sell cars made in its political rival China.
India is now said to be considering reducing import taxes for international EV manufacturers for a period of five years if those companies eventually commit to setting up local factories.
But some announcement may come Vibrant Gujarat Global SummitIn January, the person said, speaking on condition of anonymity because the discussions are private. Gujarat, which is Prime Minister Narendra Modi’s home base, Maharashtra and Tamil Nadu are under consideration as they already have well-established ecosystems.electric vehicles And exports, another person said.
Tesla will make an initial minimum investment in any plant of about $2 billion, one of the people said, and will consider increasing purchases of auto parts from the country to $15 billion. The American automaker will also try to make some batteries in India to reduce costs, the person said.
No final decisions have been made and plans are subject to change, the people said. Tesla Chief Executive Officer Elon Musk had said in June that Tesla plans to make “significant investments” in India and intends to arrive here in 2024.
Representatives of India’s Ministry of Heavy Industries, which oversees the automobile sector, and the ministries of Finance, Commerce and Industry did not respond to requests for comment. Tesla also did not respond to a request for comment.
Entering the world’s most populous country, where demand for electric vehicles is growing among aspirational middle-class consumers, would be a boon for Tesla, which currently has factories in the US, China and Germany. The Modi government is pushing to increase domestic manufacturing of EVs and encourage more rapid adoption of clean transportation.
Despite those efforts, Indian EV market According to BloombergNEF, the share of battery-powered cars in total passenger vehicles sold last year was only 1.3%, which has not increased further. The high upfront cost of electric cars and the lack of charging stations are making buyers hesitant to make the switch.
Tesla does not import cars directly into India due to high tariffs. Some said its first locally made cars could have a retail price of less than $20,000 when they go on sale.
Trade Minister Piyush Goyal, who visited Tesla’s plant in Fremont, California earlier this month, had said in September that Tesla planned to almost double its purchases of auto parts from India this year to $1.9 billion. Is. He had said at an event in New Delhi at that time that the electric car maker had ordered parts worth $1 billion from the country last year.
Tesla and India, the world’s third-largest automobile market, resumed talks in May after a year-long standoff. Musk has criticized India’s high import taxes and its EV policies, and India, in turn, has advised Tesla not to sell cars made in its political rival China.
India is now said to be considering reducing import taxes for international EV manufacturers for a period of five years if those companies eventually commit to setting up local factories.
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