Tesla mulls factory in India to build new $24,000 car, set to hold talks with commerce minister

Elon Musk-led Tesla is planning to build a factory to produce an ‘all-new $24,000 car’ in India. Representatives from the company will reportedly meet with Commerce Minister Piyush Goyal this month to discuss plans. The new vehicle would reportedly be 25% cheaper than its current lowest priced offering.

Tesla has expressed an interest in building a factory in India that would produce low-cost electric vehicles for the local market and for export. The upcoming meeting would be the highest level discussions between the two entities since Elon Musk met Prime Minister Narendra Modi last month. At that time the billionaire businessman said that he intended to make a significant investment in the country.

Tesla executives had also reportedly visited India in May, holding talks with officials on establishing a manufacturing base for cars and batteries in India.

Earlier this month a Times of India report indicated that the company was discussing an investment proposal with the Indian government to set up a factory with an annual capacity to produce about half a million electric vehicles. Tesla is also reportedly looking to use India as an export base to ship cars to countries in the Indo-Pacific region.

While India has been keen for Tesla to manufacture vehicles locally, the company’s entry plans had remained stalled over high import taxes. New Delhi levies as much as 100% import tax on electric vehicles and thus far discussions have not indicated any change in stance. Tesla also hired a local team and began a search for showroom space last year.

While these plans were abandoned last year, Tesla has reportedly proposed setting up a new factory – albeit without specifying a location or investment plan.

(With inputs from agencies)

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Updated: 24 Jul 2023, 10:13 PM IST

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