Tesla wants to build a factory in India

Vlad, 18 May 2023

Last year, Tesla asked the Indian government to lower the import tax on cars, since it can be as high as 100%. The government refused, preferring that the carmaker build its vehicles inside the country, while Tesla itself wanted to test the market with imports first. As a consequence, the company put its plans to sell cars in India on hold.

Now it seems like Tesla changed its mind on the matter, as it has reportedly proposed setting up a factory in India, which would build EVs for both the domestic market, as well as export. This information allegedly comes from "a source with direct knowledge of the matter".

Tesla wants to build a factory in India

The proposal for a new factory was submitted by Tesla to Indian officials without a specified location or investment amount, the same source claims. Furthermore, this time around Tesla said nothing about lowering taxes. Senior Tesla executives are in India this week to meet the government to discuss "local sourcing of parts and other issues", Reuters reports.

The Tesla delegation met officials from Indian Prime Minister Narendra Modi's office as well as other ministries, so the timing definitely fits for such a proposal to be submitted to the Indian officials. We assume that talks will go further, into details about location and the investment amount, once said officials approve the proposal in its current vague form, and then it will be a matter of negotiating incentives, as that's what these things generally turn into.


Reader comments

  • Hopeful

This is great news. Hopefully, the factory comes to fruition and local companies will also have to compete aggressively in the EV space.



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