Elon Musk’s car company, Tesla, is reportedly in advanced talks to enter the Indian market and may invest around $30 billion in the next five years.
As India approaches drafting a new electric vehicle (EV) policy, Tesla is in advanced-level talks to enter India and invest about $30 billion directly and indirectly over the next five years. May be ready to invest.
Tesla Plans Huge Investment in India
This 30 billion-dollar investment will be spent on everything from building manufacturing plants and opening related industry companies to marketing and other items. People closely associated with the company’s official business plans have revealed this.
According to the report, this investment includes a direct and immediate investment of $3 billion to produce a new small car from an Indian plant for the wider developing world and a $10 billion commitment from other partners to support this manufacturing venture. , and the battery industry ecosystem could add $15 billion.
Tesla is preparing this plan to invest $30 billion in the next five years.
The Government of India is preparing a new Electrical Vehicle Policy, which is not for Tesla but is being expanded for the manufacture and expansion of the market of electric cars in India, under which the import duty for Tesla’s foreign manufactured EVs To meet the demand for discounts in the existing structure, the company is planning to launch its standard brands in limited numbers first.
The aim is to compete in the Indian luxury car market by building and testing the charging ecosystem. Along with this, Tesla can also invest in a factory in India to make the first small car within two years, whose factory will be completed within three years.
The pricing structure of the car has not been determined at the moment. Still, it is likely to be a cheaper model than the regular Tesla to meet the demands of countries in Asia, Africa and Latin America. The factory, with a high level of locally made India-made materials, could partly cater to the Indian market and focus mainly on exports, officials tracking the deal have indicated.
Biggest Investment In India
If Tesla’s investment is finalized, it will be the biggest investment ever for India. Tesla will invest $3 billion in the plant, and other partners in its manufacturing ecosystem will invest $10 billion. Parallel to this, there will be another investment of $5 billion in battery manufacturing, which can be increased to $15 billion.
According to an official close to the company and involved in the project discussions, discussions are being held with Tesla in the advanced stage for an investment of $30 billion.
The concerned official said this could be a ‘Suzuki moment’ for India’s electric car sector when Maruti Suzuki came to India with small cars in the 1980s. Then, Maruti cars spread all over India. Suzuki’s entry into the Indian market is considered a revolution.
Tesla will come to India when Apple is already building its factory there. Although Apple plans to enter the Indian market gradually, Tesla is entering the market at once with all its resources, so this could be a historic moment for India. Tesla company creates a giant ecosystem with itself, and if it comes to India with an investment of 30 billion dollars, then, believe me, a historic revolution will happen in the Indian market.
However, Tesla did not officially comment on its specific plans for India. But a senior official working in an economic ministry of the Government of India said, “India will consider providing incentives to all players in the EV sector. There will be no company-specific incentives in any sector.” But this suggests that the door to import duty concessions is still on the table as a part of a broader policy.
