PM Modi Propels Tesla's Entry: Factory Site Hunt Underway

By siliconindia  |  Thursday, 04 April 2024, 06:32:24 PM IST

PM Modi Propels Tesla's Entry: Factory Site Hunt Underway
After nearly a decade since Prime Minister Narendra Modi's visit to Tesla's facility in Palo Alto, California, Elon Musk is poised to bring Tesla to India, marking a significant milestone in the country's electric vehicle (EV) industry. Reports reveal that Musk is sending a team to scout for a potential location to establish a $2-$3 billion EV plant in India.
The states of Gujarat, Maharashtra, and Tamil Nadu are on top of Musk's considerations due to their existing EV infrastructure and convenient ports for export. Prime Minister Modi's persistent efforts in persuading Musk to explore India as a strategic destination for Tesla's Gigafactory and EV exports have played a crucial role in this development. Last year, during a meeting in the US, PM Modi invited Musk to consider investments in India's electric mobility sector, which garnered positive responses from the Tesla CEO.
Musk's expressed commitment to India aligns with PM Modi's vision of leveraging technology to make advancements accessible and affordable across various sectors. The aim is to establish a robust supply chain ecosystem in India, enabling the production of affordable electric cars starting from approximately Rs 20 lakh.
Acknowledging PM Modi's dedication to India's progress, Musk highlighted the Prime Minister's emphasis on ensuring that investments benefit India's interests. Musk expressed optimism about India's potential, citing it as having more promise than any other large country in the world.
Union Minister Piyush Goyal's visit to Tesla's manufacturing facility in California underscored India's growing importance in Tesla's global operations. Goyal noted the significant contributions of Indian professionals to Tesla's journey and the increasing involvement of Indian auto component suppliers in Tesla's EV supply chain.
The recent announcement of India's new EV policy, spearheaded by PM Modi's government, further sets the stage for Tesla's entry into the Indian market. The policy includes a reduction in customs duty to 15%, with conditions such as a minimum investment of Rs 4,150 crore and requirements for domestic value addition within specific time frames. These policy initiatives create favorable conditions for Tesla's foray into India.
India's EV market holds immense potential, with projections indicating over 40% penetration and $100 billion in revenue by 2030. Bain & Company and Blume Ventures' recent report forecasts strong adoption rates in the two-wheeler and three-wheeler segments, with significant growth expected in four-wheelers as well.
Furthermore, India's efforts to bolster its EV charging infrastructure and initiatives like the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) scheme further catalyze EV adoption.
Tesla's entry into India signifies a major leap forward for the country's EV industry, promising technological advancements, job creation, and sustainable mobility solutions. With supportive government policies and a conducive investment climate, India is poised to emerge as a key player in the global EV market in the coming years.

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