India is slowly getting closer to sealing a deal with US-based EV maker Tesla Inc that will allow the company to ship its vehicles to the country from next year and set up a factory within two years, Bloomberg reported on the development. Said citing sources related to. informed of. A source told the news agency that according to the report, it may be announced at the Vibrant Gujarat Global Summit in January. Gujarat, Maharashtra and Tamil Nadu are on the radar as they already have well-established ecosystems for electric vehicles and exports, another person said.
The Elon Musk-owned electric carmaker will make an initial minimum investment of about $2 billion in any plant and will consider increasing purchases of auto parts from India to $15 billion, one of the sources said, while Tesla is also considering doing the same. Will try. Make some batteries in India to reduce costs. However, no final decision has been made and plans may change according to sources.
Tesla CEO Musk had said in June that the company plans to make “significant investments” in India and he intends to visit in 2024. India’s Ministry of Heavy Industries, which oversees the automobile sector, and representatives of the ministries of Finance, and Commerce and Industry did not respond to Bloomberg’s requests for comment.
Launching Tesla in the Indian market will be a boon for the car company, which currently has factories in the US, China and Germany. The Center is emphasizing on increasing domestic manufacturing of EVs and encouraging more rapid adoption of clean transportation.
Despite those efforts, India’s EV market has not taken off, with battery-powered cars accounting for just 1.3 percent of total passenger vehicles sold last year, according to BloombergNEF. The high upfront cost of electric cars and the lack of charging stations are making buyers hesitant to make the switch.
Trade Minister Piyush Goyal, who visited Tesla’s plant in Fremont, California earlier this month, had said in September that Tesla planned to nearly double its purchases of auto parts from India to $1.9 billion this year. Is. He had said at an event in New Delhi at that time that the electric car maker had ordered parts worth $1 billion from the country last year.
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