This month, Tesla and India’s Minister of Commerce & Industry, Piyush Goyal are scheduled to have high-level negotiations regarding the possibility of establishing a manufacturing there. The main goal is to produce a brand-new, reasonably priced electric car for the domestic market and prospective exports. It is anticipated that the new entry-level Tesla EV will cost Rs. 20 lakhs (ex-showroom).
Tesla Entry into the Indian MarketWhen compared to the current least expensive Model 3 sedan, which starts at $40,240 in the United States, the projected new Rs. 20 lakh electric vehicles will provide Indian consumers with a more inexpensive alternative.
When the Indian government underlined the necessity for local production commitments, Tesla’s earlier attempts to lower import tariffs on its EVs shipped to India ran into resistance.
Tesla intends to talk about the construction of an EV supply chain and the land allotment for the potential manufacturing as part of its interaction with Indian government officials. The action is anticipated to increase India’s manufacturing capacity and generate new jobs.
Tesla’s Cost-Cutting StrategyThe company’s ability to dramatically reduce the cost of EVs will determine its long-term success. Tesla’s upcoming car platform aims to cut manufacturing costs by half and has the ability to support a number of vehicles, including an autonomous “robotaxi.”
India is the third-largest auto market in the world, although less than 2% of cars there are currently electric. The launch of a low-cost Tesla India model tailored for Indian weather and roads could hasten the nation’s switch to electric vehicles.
To strengthen the charging infrastructure in India, Tesla in India has to set up a massive fast-charging network across the nation in addition to introducing a low-cost EV. The electric car ecosystem in our nation is a major factor in the low adoption rate of EVs.
