Tesla is looking to expand its presence in India, doubling its component imports and exploring the possibility of a manufacturing facility. India's growing economy and potential for electric vehicle adoption make it an enticing market for Tesla.
Troy D. Hanson
November 14, 2023
Tesla's stronghold in China is widely known, with a factory and a growing market of affluent consumers. However, the renowned electric vehicle manufacturer seems to have set its sights on another Asian powerhouse: India.
According to India's Commerce Minister, Piyush Goyal, Tesla is poised to double its component imports from India. Goyal revealed this exciting development on the social media platform X, following his recent visit to Tesla's factory in Fremont, California.
India, boasting the world's fifth-largest economy and the highest population, has been identified as a potential location for Tesla's next manufacturing facility. Elon Musk, the CEO of Tesla, stated in May that the company would announce the location by the end of the year. In June, after a meeting with Indian Prime Minister Narendra Modi, Musk expressed optimism about Tesla's entrance into the Indian market.
Although new electric vehicle adoption in India lags behind that of the United States, and the majority of Indian consumers prefer two- and three-wheelers, the country's rapidly growing economy makes it an enticing prospect for Tesla.
In recent months, Tesla has been engaged in discussions with the Indian government regarding incentives. There is even a possibility that Tesla may establish a battery manufacturing plant in India for local production and sales, as per undisclosed sources cited by Reuters in September.
This week has seen further progress on this front. India is currently considering Tesla's request for a reduction in high import tariffs for electric vehicles—an astounding 70% duty for vehicles valued under $40,000, and a staggering 100% duty for higher-priced models. The Financial Times reported on Monday that the Indian government officials are reviewing this request. It is believed that this concession is a prerequisite for Tesla to build its manufacturing facility in India.
The ever-expanding Tesla empire continues to make waves globally, and with its potential entry into India's lucrative market, the future appears brighter than ever for this pioneering electric vehicle manufacturer.