Despite facing a tariff dispute with the Indian government in the past, Tesla seems determined to tap into the potential of the Indian market. According to an unnamed source cited by Automotive News, Tesla has recently approached government officials with its proposal for the construction of a factory in India. The factory would serve both the domestic market and act as an export hub. While specific details about the plans are scarce, it is reported that senior executives from Tesla are currently in India, engaging in discussions with government officials regarding local sourcing of parts.
Previously, Tesla had put its plans on hold due to the Indian government's refusal to grant approval for the sale of imported electric vehicles (EVs) without significant local tariffs. However, India has been urging Tesla to establish a local manufacturing presence, and this recent proposal could be a step in that direction.
India stands as the world's third-largest car market, with over 4.4 million new light vehicles sold in 2022 alone. Tesla recognizes the immense potential that India holds, even though its EV market is still relatively small compared to the United States and China. By setting up a factory in India, Tesla aims to capitalize on the growing demand for EVs in the country and strengthen its position in the market.
As of now, Tesla has not disclosed the investment amount or the potential location of the factory. However, with the company actively engaging in discussions with Indian government officials, it appears that Tesla is committed to making significant strides in the Indian automotive landscape.
Source: Automotive News