Tesla chose India over China! Offer to set up an electronic vehicle factory
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world’s largest electric vehicle manufacturer Tesla has revived its efforts to enter the Indian EV market. As per reports, Tesla has offered to set up its electric vehicle manufacturing facility in the country. Let us tell you that after the last talks the impasse over higher taxes on imported cars was ended. The new development in the matter comes nearly a year after Tesla CEO Elon Musk practically called off his India plans. This meeting is considered important ahead of Prime Minister Narendra Modi’s visit to America next month.
Tesla offered – PTI
According to news agency PTI, the purpose of Tesla’s proposed India Gigafactory will be to manufacture electric cars locally which will also be used for export to Asian and other markets. However, there has been no talk on the location of the EV facility or the amount of investment Tesla will put in
Amid rising tensions between the US and China, many carmakers, including Tesla, are looking for new locations for EV business in the future.
Tesla’s re-heating in India is seen as part of the EV maker’s efforts to diversify beyond China, its biggest market outside the US. Amid rising tensions between the US and China, many carmakers, including Tesla, may be pushed to find new locations for EV business in the future. Apart from components, China is also important to the global EV business for its battery manufacturing. India could be an alternative market where the government is keen to promote local manufacturing.
Nitin Gadkari had offered, Elon Musk refused
Earlier, the Center had advised Tesla to set up a local manufacturing plant if it wanted to sell EVs in India. Union minister Nitin Gadkari had said that Tesla would be welcome in India if it made EVs locally and did not import them from China. Elon Musk declined the offer, saying, “Tesla will not set up a manufacturing plant at any location where we are not allowed to sell and service cars first.”
Tesla officials met PMO officials
After hectic lobbying until the beginning of last year, Tesla’s new move does not include talk of reducing import duties. According to sources quoted by news agency Reuters, Tesla officials who met PMO officials did not raise the matter in the meeting. India imposes a 100% import duty on fully imported cars with a CIF (cost, insurance and freight) value of more than $40,000 and 70% on cars costing less than that.
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