Tesla seeks to build factory in India with 500,000 annual capacity

Published by: Vivek Dubey

Tesla, the US electric car maker, has started talks with the Indian government to set up a car factory and use India as an export base for the Indo-Pacific region, after a change in strategy following a deadlock over import taxes last year.

Tesla in talks with Indian government for car factory

Tesla has begun discussions with the Indian government for an investment proposal to set up a car factory in the country.

Factory to produce up to 500,000 EVs annually

The car factory would have an annual capacity of as many as 500,000 electric vehicles.

Prices to start from Rs 20 lakh

The prices for the vehicles would start from around Rs 20 lakh ($24,400.66), according to a Reuters report.

India as an export base for Indo-Pacific region

Tesla is also looking at using India as an export base as it plans to ship cars to countries in the Indo-Pacific region, the report said, citing government sources.

Shift in strategy after talks stalled last year

Tesla changed its strategy after India rejected its request for lower import taxes on cars.

Tesla wanted to test demand before local manufacturing

India was keen for Tesla to manufacture vehicles locally, but the company said it wanted to export its cars first so that it could test the strength of demand.

Tesla discussed incentives for car and battery manufacturing in May

Tesla talked to officials in May about government incentives for car and battery production.

Modi pushed Tesla to make a significant investment in India

In a meeting with Musk last month, Indian Prime Minister Narendra Modi pushed the car maker to make a "significant investment" in the country.

Musk sees strong potential for sustainable energy future in India

India has strong potential for a sustainable energy future including solar power, stationary battery packs and electric vehicles, Musk said after meeting Modi.

Musk hopes to bring SpaceX's Starlink service to India as well

Musk also expressed his hope to bring SpaceX's Starlink satellite internet service to India as well.

(With inputs from Reuters)

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