Tesla Isn’t Giving Up On The India Market, Could Set Up New Plant For Local Production

Published May 18, 2023
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Our hopes for Tesla’s entry in India have been rekindled with a new proposal that could make local production a possibility

It seems like Tesla really doesn’t want to miss out on the gains that can be made via penetrating the Indian market as it is trying to rekindle relations with the government in the hope of a possible entry. This isn’t the first time that the carmaker is trying to strike a deal with the government of India, but it seems like things are more likely to pan out this time around.

What’s happening?

As per multiple reports, Tesla officials will meet with the government officials this week in the hopes of cracking a possible deal for procurement of a manufacturing facility in India. This probably should seal the deal for its entry in the country, because it was the high taxes on imports that initially halted Tesla’s India plans.

Even after Tesla’s plea to cut down on them, the Indian government stood its ground, which led to Tesla dropping its plan around this time last year. Looks like Tesla just wanted to gauge market response before actually setting up shop for location production in the country.

But those high taxes will be negated with local production or even local assembly (CKD), which will also subsequently bring the price down from a consumer perspective. And from the looks of it, that’s what the government wants - local production.

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So if the Tesla officials do have a pitch that includes plans for a manufacturing facility in India, we would expect breaking news to come in the next few days, confirming the entry of the carmaker in India. Fingers crossed!

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If everything does pan out, Tesla could start its Indian innings with the likes of the Model 3, Model Y, and even the new baby crossover which was teased a couple of months back. When they will arrive and how they are going to fare in India’s relatively nascent EV industry are two questions, whose answers are hinged over the type of deal the carmaker makes with the government. So keep an eye out for this space in the near future.