Tesla’s Indian entry is on the cards as per recent reports, and the government is finally making a fix on the import of American carmaker’s electric cars. The USA-based EV maker will be setting up a production unit in the country within a period of 24 months after its official entry, reports suggest. Although no official statement has been released from either party, one could be made at the Vibrant Gujarat Summit, which is scheduled for next year. With the confirmation made, states like Kerala, Tamil Nadu, Maharashtra and Gujarat, are expected to be participating in the race to house the Tesla’s production unit.
The EV giant is likely to invest at least USD 2 Billion to establish a production unit in the country with high standards of localisation for electric cars. Reports suggest that Tesla could locally source components worth USD 15 billion. Earlier reports have claimed that the carmaker will be producing the battery packs domestically to keep the cost of its EVs down.
While the cost of electric vehicles have reduced when taking into consideration the larger, more practical, and luxurious offerings, Tesla Inc. could set the example of localisation to new heights. Several reports reveal that the first made-in-India product of Tesla could cost Rs 17 lakh only. For reference, the top-spec trims of the Mahindra Scorpio-N – Z8L, costs Rs 20.02 lakh, ex-showroom.
The entry of Tesla now certainly seems realistic as the ties between the Indian government and the brand have also improved. Recently, the Union Minister for Commerce visited Tesla’s factory in the USA. Since Elon Musk was ill and could not meet Piyush Goel, he later apologised on the social media platform X. Minister Piyush Goel was delighted with his visit to the state-of-the-art manufacturing unit.