News DeskAmerican electric vehicle pioneer Tesla is inching closer to entering the Indian market, with negotiations gaining momentum. Talks, previously stalled, now hold promise for not just importing Tesla’s existing models but also establishing a dedicated manufacturing plant in India by 2026.
Mukesh Aghi, President of the US-India Strategic Partnership Forum, sees this as a mutually beneficial move. Tesla gains access to a vast market of 1.4 billion potential customers, while India benefits from the establishment of a domestic chip manufacturing ecosystem, enhancing technological prowess.
Reports suggest Tesla is proposing a $2 billion investment for a local factory, emphasizing a reduced import duty of 15% for the first two years. The Indian government is open to negotiation, considering a concessional rate, possibly 15-20%, albeit with limits on the number of cars benefiting from the tariff break.
The potential deal follows Tesla’s exploration last July, suggesting a massive car factory in India with an annual production capacity of 5 lakh vehicles. This aligns with CEO Elon Musk’s meeting with Prime Minister Modi, reflecting newfound momentum in Tesla’s Indian foray.
Tesla’s Model Y, an affordable electric SUV, is expected to lead its Indian lineup. Positioned as a game-changer for electric car adoption in India, it offers versatility with optional third-row seating. Additionally, Tesla plans to debut its most affordable electric car in India, signaling a commitment to accessibility.
While the exact launch date remains uncertain, signs point to a potential debut in 2024.
