Tesla CEO Elon Musk emphasized the importance of India embracing electric vehicles (EVs), stating that it’s a natural progression for Tesla to enter the Indian EV market. Musk highlighted India’s status as the most populous nation and stressed the necessity for electric vehicles to align with global standards. He expressed this sentiment during an X Spaces meeting with Nicolai Tangen, CEO of Norges Bank Investment Management, stating, “It’s a natural progression to provide Tesla electric vehicles in India.”
Musk further predicted that all vehicles would eventually transition to electric power, marking a significant shift in the automotive industry.
In recent developments, Tesla has intensified its efforts to expand its presence in India, actively seeking a suitable location for a cutting-edge manufacturing facility. States like Gujarat and Maharashtra have extended lucrative land offers to Tesla for establishing an EV manufacturing plant, signaling a major advancement in India’s electric mobility landscape.
Reports suggest that Tesla is considering constructing a manufacturing facility in India, estimated to cost between $2 billion and $3 billion. This factory would cater to both domestic and international markets for Tesla’s electric cars.
The move aligns with India’s new EV policy, which offers incentives for setting up manufacturing plants in the country. Tesla aims to establish a robust manufacturing presence in India, positioning itself as a key global player in the electric vehicle industry.
India’s EV strategy focuses on promoting the country as an attractive manufacturing destination for EVs equipped with advanced technology. Objectives include attracting investments from reputable international EV manufacturers, encouraging adoption of cutting-edge EV technology among Indian consumers, and supporting the ‘Made in India’ campaign.
Under the policy, manufacturers are incentivized to achieve significant levels of domestic value addition (DVA) and meet a minimum investment threshold. The government also mandates a gradual increase in domestic sourcing of vehicle components over time.
Tesla intends to scout potential sites for the manufacturing facility in India, deploying a team of specialists as part of its investment plans.
Additionally, the Indian government is set to launch an initiative allowing qualifying enterprises to import up to 8,000 vehicles annually with reduced tariffs. This initiative is expected to commence by the end of the month.
Last year, Tesla CEO Elon Musk met with Prime Minister Narendra Modi, expressing enthusiasm about the future of India. Musk expressed confidence that Tesla would enter the Indian market “as soon as humanly possible.”
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