Tesla Holds Ongoing High-Level Talks With Indian Officials Over Factory Plans

Credit: Tesla

In a bid to enter the promising Indian market, Tesla, the renowned car manufacturer, has recently intensified its efforts, with two senior executives engaging in discussions with officials from the nation’s investment promotion arm.

After pausing its plans to enter the Indian market, Tesla presented a proposal in May to establish a substantial factory in the country. However, Indian authorities declined to grant the automaker an exemption from local import tariffs that can reach as high as 100%. Tesla had previously hoped to sell its electric vehicles (EVs) in India by importing them from the United States and China.

Presently, Tesla’s senior public policy and business development executive, Rohan Patel, along with the vice president for supply chain, Roshan Thomas, are in Delhi and have held meetings with Invest India, including its chief executive, Nivruti Rai. Although specific details about these discussions remain private, it is believed that Tesla is also scheduled to meet with Indian commerce minister Piyush Goyal to explore possibilities for factory land allotment and establishing an EV supply chain within the country.

One of Tesla’s key interests in India lies in manufacturing its highly anticipated, entry-level EV. This model has been in development since 2020, with Tesla targeting a market entry price of approximately $25,000. Achieving such affordability would be a significant milestone for the EV industry, making it only marginally more expensive than an entry-level Toyota Corolla.

Notably, Tesla’s CEO, Elon Musk, previously asserted that the new model would have the capability to operate “almost entirely in autonomous mode.” However, this feature is likely to be reserved for vehicles equipped with Tesla’s Full Self-Driving system, which currently comes at an additional cost of $15,000.

As Tesla continues its dialogue with Indian officials and explores the prospects of local production, the EV manufacturer remains committed to expanding its global footprint and contributing to the widespread adoption of sustainable transportation solutions.

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