Electric car manufacturer giant Tesla announced its entry into the Indian market a few years ago. Due to various disagreements with the government, Tesla put its plans to launch cars in the market on hold. However, we now have...

Electric car manufacturer giant Tesla announced its entry into the Indian market a few years ago. Due to various disagreements with the government, Tesla put its plans to launch cars in the market on hold. However, we now have good news that suggests Tesla will soon be launching its products in the Indian market. According to reports, Tesla could officially launch in India in January 2024. The brand is expected to make this announcement during the Vibrant Gujarat Summit held in Gandhinagar. Reports also suggest that Tesla is in the final stages of negotiating with the government for land to set up a manufacturing facility in India.

According to reports released by Gujarat Samachar and other state media publications, Tesla is most likely to set up its manufacturing facility in Gujarat’s Sanand. India’s major car manufacturers like Maruti Suzuki and Tata also have manufacturing facilities there. High import duties were the major reason why Tesla did not launch its products in India. The electric car manufacturer extensively tested their Model 3 and Model Y, which were spotted testing several times. They even increased the ground clearance of the Model 3 to suit Indian road conditions. However, the steep import duties became a deal-breaker for Tesla and forced them to put their plans on hold.

Reports indicate that Tesla is now expected to sign Memorandums of Understanding at the Vibrant Gujarat Summit. This is an annual global gathering of investors interested in the state. Elon Musk is also expected to make an appearance during the upcoming Summit. Prime Minister Narendra Modi met Elon Musk during his USA visit, and Union Minister Piyush Goyal recently visited a Tesla facility in the US. This could be the reason why Tesla reconsidered the Indian market. Apart from Gujarat, many other states like Karnataka, Maharashtra, Tamil Nadu, and Telangana invited Tesla to set up plants in their states.

The reason Tesla might have opted for Gujarat is probably because of the ease of access to the ports. They can utilize this port to export EVs to other markets. It should be noted that neither Tesla nor the government has confirmed anything about the Sanand plant. There are reports that the Gujarat government has also offered them land in places like Becharaji and Dholera. Other than car manufacturing, Tesla had earlier hinted that they are interested in manufacturing batteries for EVs in India too.

Along with their popular models like Model 3 and Model Y, Tesla is expected to launch an affordable electric vehicle in the Indian market, expected to be priced under Rs 20 lakh. Tesla confirmed they are currently working on an affordable electric car for emerging markets, and India is one such market for the EV maker. When launched, it will compete with cars like Tata Nexon EV in the segment. As of now, there is no information related to the upcoming EV. There are rumors suggesting the upcoming affordable Tesla will be a hatchback. Although Tesla is setting up a manufacturing facility in India, don’t expect an affordable price tag for their Model 3 and Model Y cars.

via: HT

View Entire Post