Tesla's ambitions to sell vehicles in India, but also to have them produced there, have increased again and the company is considering extensive investments in the country. On November 6, political changes in India were discussed that could have an impact on the production of electric vehicles. The focus was on Tesla's investment application and the steps required from the Indian government for approval. According to the latest information from Bloomberg, Tesla is initially planning to invest around 2 billion US dollars in the construction of a new factory in India. In addition, the company wants to purchase car parts worth 15 billion dollars from India. Local production of batteries is also being considered in order to save costs.
Last week, Indian government representatives led Tesla's request to reduce import duties on cars, especially electric vehicles. The Indian government is considering a general duty reduction for imported electric vehicles, not just Tesla models. The high import duties for foreign vehicles have so far been an obstacle for Tesla to establish itself in India. The report mentions that India is considering lowering them for those electric car manufacturers who commit to local production later. Even for vehicles under 40,000 dollars, the tariffs are currently 70 percent, and even 100 percent above that. A temporary reduction to 15 percent was recently discussed. However, the Indian government's plans to reduce import duties could now open a door for Tesla India.
The official announcement of Tesla's investment plans in India is expected at the Vibrant Gujarat Global Summit in January 2024. Elon Musk had already mentioned Tesla's intention to invest heavily in India in June and is planning a visit in 2024.
