Tesla is reportedly planning to work on a car built for the Indian market as well as for export. The car is likely to be priced at approximately Rs 20 lakh ($24,000). A Reuters report claims that Tesla representative will meet India’s commerce minister, Piyush Goyal, this month to discuss their ambitious plans of setting up a factory in India to produce the budget-friendly EV.
The report suggests that Tesla is keen to establish a local manufacturing base in India. The proposed factory would not only cater to the Indian market’s demand for affordable EVs but also act as an export hub. The discussions indicate a strategic shift for the company, as it comes after previous efforts to reduce import taxes on EVs faced hurdles due to demands from government officials for local manufacturing commitments.
Tesla’s upcoming offering in the Indian market is expected to be a game-changer, priced at around Rs 20 lakh ($24,000). This price point makes it 25 per cent cheaper than its current lowest-priced offering, the Model 3 sedan, which is available for just over $32,200 (Rs 26.32 lakh) in China.
The meeting with the commerce minister will be the highest-level discussion between Tesla and the Indian government since June, when CEO Elon Musk met with Prime Minister Narendra Modi and expressed intentions of a substantial investment in India.
The electric vehicle market in India is still in its nascent stages, accounting for less than 2 per cent of total vehicle sales in the country. However, with Tesla’s entry into the affordable segment, there is expected to be a surge in demand for EVs in the coming years. The Indian market has limited EV options in the sub-20 lakh price segment.
Also read: Tesla sets sights on APAC and African markets from India, considers South and Gujarat for Gigafactory