Tesla Plans $30 Billion Investment in India for Plant Setup and Small Electric Car Production
New Delhi, 13th January 2024: Amidst long-standing discussions about Tesla’s entry into the Indian market, recent reports suggest that the talks are progressing in a favorable direction, potentially leading to the establishment of a Tesla plant in the country. The company’s top officials have engaged in multiple rounds of talks with the government, signaling a positive shift in their approach.
The Indian automobile market, especially the demand for electric vehicles (EVs), has witnessed significant growth, prompting Tesla to consider a substantial investment in the country. Unofficial sources indicate that Tesla is eyeing a $30 billion investment in the Indian market over the next five years. While this information awaits official confirmation, Tesla had previously hinted at its plans to introduce a small car designed for specific countries, including India.
The potential investment is contingent on the awaited new EV policy. If the policy grants import duty exemptions, Tesla is likely to introduce its premium cars to the Indian market. Additionally, the company plans to invest in a production unit capable of manufacturing a small electric car, with the aim of launching it within the next two years. This compact vehicle is expected to be exported to various countries in Asia, Africa, and Latin America.
As of now, specific details about the car, including its features and pricing, remain undisclosed by Tesla. However, industry observers believe that Tesla’s entry into the hatchback segment with an economical model could pose a significant challenge to both domestic and international competitors.
If Tesla proceeds with establishing a production plant for small cars in India, the company is reportedly capable of an immediate investment of $3 billion. Furthermore, a commitment of $10 billion with other partners and a cumulative investment of $15 billion in the battery industry ecosystem is anticipated over the next five years.
