Tesla, the electric vehicle giant owned by Elon Musk, is eyeing India for a major factory setup. According to reports from The Financial Times, Tesla is sending a team to scout potential locations in India. This team is expected to arrive this month to finalize the factory's location, with Tesla planning to invest between $2 billion and $3 billion in the project.
The team from Tesla will be exploring various states in India, particularly focusing on Maharashtra, Gujarat, and Tamil Nadu. These states already host several car manufacturing facilities, making them attractive options for Tesla's new venture.
This move comes amid a time when demand for electric cars is not as high and competition is fierce. Tesla faced lower-than-expected sales in the first three months of this year. In response, the Indian government recently reduced taxes on certain electric cars, provided that the companies invest at least Rs 3,700 crore and commence car production within three years.
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Tesla has been eager to enter the Indian market for some time. Indian government officials have been in discussions with Tesla for about a year, and in June last year, Elon Musk met with Prime Minister Narendra Modi. Tesla expressed its intent to establish a factory in India to manufacture a car priced at around Rs 17,30,000. Additionally, they requested reduced taxes on higher-end models they plan to sell in India.
Experts suggest that if Tesla begins selling cars in India, it could pave the way for other companies to invest in electric vehicles as well. This shift could benefit Indian companies that manufacture car parts, potentially boosting the electric vehicle sector in the country.
Tesla's potential entry into India signifies a significant step towards promoting sustainable transportation and aligning with India's push towards electric vehicles and cleaner energy.
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