Tesla Eyes India for $2-3 Billion EV Plant

By siliconindia  |  Thursday, 04 April 2024, 09:36:24 AM IST

Tesla Eyes India for $2-3 Billion EV Plant
Following the approval of a new electric vehicle (EV) policy by the Narendra Modi-led government in India, Tesla is reportedly set to explore locations in the country for establishing a $2-3 billion plant. The Financial Times reported that a team from Tesla would arrive in India by late April to assess potential sites for the plant, with a focus on states like Maharashtra, Gujarat, and Tamil Nadu, known for their EV infrastructure and accessible ports for exporting cars.
The new EV policy, which includes a reduction in customs duty to 15 percent, has paved the way for Tesla's potential entry into the Indian market. Prime Minister Modi previously met with Tesla CEO Elon Musk in the US, applauding Musk's efforts to make technology more accessible and affordable across various sectors. During their meeting, PM Modi invited Musk to explore investment opportunities in India's electric mobility and expanding commercial space sectors.
Under the new EV scheme, the government has stipulated a minimum investment of Rs 4,150 crore (approximately $500 million) for setting up manufacturing facilities. Production must commence within three years, with a domestic value addition (DVA) of 25 percent within three years and 50 percent DVA within five years at maximum.
Tesla has not provided official comments regarding these reports, but the potential entry of the company into India's EV market signifies a significant development in the country's automotive sector and aligns with its efforts to promote sustainable transportation solutions.

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