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After a tussle of a few years, it seems like the Indian government and the American electric carmaker Tesla Inc. are reaching an agreement. Recently, it has been reported that the government of India will be soon signing an agreement with Tesla to allow the imports of its cars to India. Additionally, it has also been reported that the company will be setting up a factory in India and will be launching a Rs 17 lakh (USD 20,000) car in the country as well. These reports have come via sources close to the Indian government.
Tesla to launch an EV under Rs 20 lakh
It has been reported that the American EV maker has indicated that the majority of the volumes from its new production facility which it will set up in India will be for the Rs 17 lakh (sub-$20,000) electric vehicle. Tesla has stated that it is already working on this vehicle for emerging markets. As of yet, not much is known about this upcoming $25,000 Tesla. However, as mentioned, it is being designed especially for the Indo-Pacific region. Currently, there is an increasing demand for electric vehicles in India, and such an affordable EV from Tesla could become a game-changer for the brand as well as the country.
Elon Musk hosted the Prime Minister of India Narendra Modi back in July of this year. During their meeting, the plans for setting up a factory in India accelerated and have reached where they are right now. At the time, it was also reported that Tesla is in discussion with the government officials to set up a production facility with an annual production capacity of 5 lakh electric vehicles.
Tesla cars to become available in India
According to ET Auto, both Tesla and Indian government will be signing a new agreement and will commence the imports of Tesla cars in India, the company would also set up its manufacturing plant with a minimum investment of $2 billion. Apart from this, the company will also be looking to increase its parts purchase from the manufacturers in the country to $15 billion. In addition, the company could also set up a manufacturing plant in India to further lower down the cost of vehicles in India.
It has been reported by sources close to the matter that the company is looking to set up the factories in one of the three states in India. The first state among the choices is Gujarat, and the other two are Maharashtra and Tamil Nadu. Now in which state the company will be setting up its factory has not been finalized just like all of the other plans. However, as per the reports, the Indian government and Tesla could be making this announcement at Vibrant Gujarat Global Summit, which will be held in January of next year.
Elon Musk’s apology to Piyush Goyal
This update on Tesla’s entry into the Indian market comes out days after Indian leader of the Rajya Sabha Piyush Goyal visited Tesla’s factory in Fremont, California. He was scheduled to meet with Tesla’s CEO Elon Musk; however, due to some unforeseen circumstances, Musk could not meet Goyal at the factory. He then shared a tweet on X stating, “It was an honor to have you visit Tesla! My apologies for not being able to travel to California today, but I look forward to meeting at a future date.”
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