Tesla’s plans in India have reignited, with the company discussing billions of dollars worth of investment in the country.
On November 6, government departments in India discussed policy changes that would affect electric vehicle manufacturing in the country. The discussions included Tesla’s investment proposal and the steps the Indian government would need to take to approve it.
Recently, more details about Tesla’s investment proposal in India were released. According to Bloomberg, Tesla is allegedly planning to invest about $2 billion initially on a new plant in India. In addition, Tesla has plans to buy $15 billion worth of auto parts from India. Tesla is also mulling over the idea of producing batteries in India to reduce costs.
Last week, government officials in India considered Tesla’s request to reduce tariffs for imported cars, specifically electric vehicles. The Indian government considered passing a sunset clause that would roll out tariff concessions to all electric vehicles—not just Tesla cars—imported into India.
India’s steep import taxes on foreign vehicles have always been an obstacle to Tesla establishing roots in the country. However, now that the local government is considering lowering import taxes, Tesla India may finally come to fruition.
An official announcement about Tesla’s investment plans in India is expected at the Vibrant Gujarat Global Summit in January 2024. Elon Musk mentioned Tesla’s plans to invest significantly in India in June. Musk plans to visit India in 2024.
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