Tesla, the world’s leading electric car maker, has submitted an initial proposal to establish manufacturing operations in India, according to government sources. The billionaire CEO, Elon Musk, has expressed interest in entering the Indian market for several years, and this move marks a significant step forward.The company’s proposal includes plans to build a gigafactory in India with an annual production capacity of around 500,000 electric vehicles. Tesla aims to introduce a wide range of electric vehicles in the Indian market and establish a robust charging infrastructure on a large scale.Sources suggest that Tesla intends to offer electric vehicles at a reasonable price range, although specific pricing details have not been disclosed. If the plans come to fruition, Tesla would become India’s third-largest car manufacturer, following Maruti and Hyundai.Further discussions between Tesla and Indian government officials are expected to take place to finalize the localisation plans, including the selection of a suitable location for the gigafactory. The Indian government is also considering implementing a second phase of the Production Linked Incentive scheme to support Tesla’s operations. Additionally, discussions are underway to expand the FAME (Faster Adoption and Manufacturing of Electric Vehicles) scheme, with the current FAME 2 scheme set to conclude in March 2024.Initial talks between Tesla officials and Indian government representatives began in late 2021, followed by test drives and meetings with various ministries in May 2023. The progress made indicates a growing interest and commitment from both Tesla and the Indian government to bring electric vehicles to the Indian market and accelerate the adoption of sustainable transportation.As Tesla’s entry into India’s market becomes a reality, it is expected to have a significant impact on the country’s electric vehicle landscape, driving innovation and further promoting the adoption of clean energy transportation.
