BUSINESS NEWS | Foundr MAGAZINE
By Ritwik Ghosh,Kolkata India
Amidst the aura of December 2023, the region has been actively engrossed in significant investment prospects by global behemoths. In pursuit of this agenda, there is a vigilant gaze upon Tesla’s proposed ventures in the Indian domain. Rumors abound that Tesla Motors is dispatching an expeditionary team to the subcontinent later this month to survey locales for its inaugural $2-$3 billion factory.
Discussions are underway between the Telangana government and the colossal electric vehicle manufacturer, Tesla, regarding the establishment of its facility within the state, as conveyed by Industries Minister D Sridhar Babu. Babu avowed on X that since December 2023, the state has been earnestly preoccupied with major investment prospects from global conglomerates. In consonance with this endeavor, meticulous attention is being paid to Tesla’s proposed forays into the Indian market.
“We have been diligently laboring to entice Tesla to Telangana for some duration,” remarked Babu.
“Telangana, with its business-friendly policies, is propelled by a progressive and visionary outlook, endeavoring to cultivate a superlative infrastructure and a streamlined authorization mechanism to facilitate the operations of esteemed entities like Tesla within its jurisdiction,” he further articulated.
Reportedly, Tesla Motors is dispatching a team from its headquarters in the United States to conduct a reconnaissance mission across Maharashtra, Gujarat, and Tamil Nadu, with the aim of pinpointing suitable sites for the manufacturing plant.
This development unfolds in the wake of the central government’s endorsement of a novel policy, stipulating reduced import duties for electric vehicle manufacturers who pledge to establish production facilities within the nation.
As per the stipulations of the scheme, the import tariff on vehicles exceeding a cost, insurance, and freight (CIF) value of $35,000 will be slashed to 15% for a duration of five years, provided the companies commit to invest a minimum of INR 4,150 Crore (approximately $500 million) in India to establish manufacturing units.
Meanwhile, reports suggest that Tesla has initiated the production of automobiles at its assembly plant in Germany, slated for export to India later in the current year.
The company purportedly commenced the manufacturing of right-hand drive vehicles tailored for the Indian market. Although the Model Y is being produced at its facility near Berlin, there remains ambiguity regarding the specific model intended for shipment to India.