Tesla CEO Elon Musk ensures entry into India
Since 2016, Tesla had tried its best to enter the Indian market but had failed all the time due to a lack of infrastructure, policies, and the market for electric mobility. Tesla Inc chief executive Elon Musk has now green signaled on Friday that the US electric carmaker will make an invasion into the Indian market in 2021. US-based electric vehicles (EV) maker Tesla will be arriving in India ‘early’ in 2021, transport minister Nitin Gadkari announced on Monday, December 28. The company will first start with sales and then will start assembling its operations in India according to the demand requirements. If all goes well, it will invest in setting up a manufacturing plant in India, eventually. Tesla has declared that if the market is sufficient, it will prefer to set up a manufacturing facility in India in times to come.
Prime Minister Narendra Modi had already shown interest in Tesla in the past years whereas Gadkari previously offered it land near the port to import their technology. Earlier in May 2019, Chennai-based automobile manufacturer Ashok Leyland had invited Tesla for a partnership to help the company bring their brand to India. The government is pushing for new policies to promote the purchase and usage of electric vehicles in form of subsidies. This will further boost the process for rapid development of the infrastructure around the EVs. The Union Minister has taken a positive decision in the right direction.
Tesla is now all set to sell its cars in India, and it would also look at setting up a manufacturing facility at a later stage depending on demand, Gadkari told TOI. Gadkari has already held a few rounds of talks with top Tesla executives. Some states have also held meetings with the electric car company for sales of its vehicles in India.
At a recent media event, Gadkari said there is a focus on developing electric cars and added that a lot of Indian firms are also looking at developing electric cars.
Tesla is likely to bring Model 3, its most affordable product to India first. Potential customers of India should note that even though the Model 3 is one of Tesla’s more affordable cars, it will not be cheap in India as they will arrive as completely built units (CBU) with a high import duty charge. While there is no confirmation on the pricing, reports suggest that one Tesla Model 3 will cost Rs 55 lakh in India.
India’s auto sector is already staggering from a slowdown in demand last year and has been further hit by the novel coronavirus pandemic. Tesla carmakers are now seeking government support to push sales. After Tesla starts pouring out cars from its factory in China, India will be the next automatic frontier for Tesla which will be the world’s largest car market.
With the craze of Tesla around the world, it is finally ready to join hands with India and enter the market in 2021.