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    Sunday, February 25, 2024

      Tesla’s Entry in India Announcement at Vibrant Gujarat Summit | Details Inside

      Tesla is set to disclose its plans for establishing a manufacturing facility in India during the upcoming Vibrant Gujarat Summit in January. The announcement will be made by Tesla’s CEO, Elon Musk, in the presence of government officials and industry leaders.

      According to reports, Gujarat has emerge as a prime location for Tesla’s venture, aligning well with the company’s export-oriented strategy to meet both domestic and international demand.

      Earlier considerations include states such as Gujarat, Maharashtra, and Tamil Nadu, all boasting well-established ecosystems for electric vehicles and export operations.

      Rushikesh Patel, a spokesperson for the Gujarat government, express significant optimism about Elon Musk considering Gujarat for this substantial investment.

      According to the ANI, Rushikesh Patel highlight the state’s suitability for Tesla’s plans and emphasise the government’s welcoming stance for Tesla

      The report said that the Tesla currently avoids direct car imports into India due to high tariffs impose by the government.

      Government has rule out subsidies on import duties for electric vehicles, Tesla has express its willingness to invest up to $2 billion in a local factory if grant a concessional duty of 15% on imported vehicles during the initial two years of operations.

      In November, reports indicate that Tesla was seeking a reduction in import duties to localize up to 20% of the value of cars made in India within two years, increasing to approximately 40% in four years.

      As of now India imposes a 100% import duty on cars exceeding $40,000 in value and a 70% duty on cheaper vehicles.

      Tesla’s initial focus in the Indian market will be on selling its Model 3, Model Y, and a new hatchback, price set at around Rs 32 lakh, Rs 36 lakh, and Rs 20 lakh respectively in the United States.

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      Potential concessional import duties could bring the prices of Model 3 and Model Y to around Rs 38 lakh and Rs 43 lakh, as per reports.

      The sources suggest that Tesla could commit to a minimum investment of around $2 billion initially, with the possibility of increasing auto parts purchases from India to as much as $15 billion, as per reports.

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