Tesla India investment deal reignites

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【Summary】Tesla is discussing a potential $2 billion investment in India to build a new plant and plans to purchase $15 billion worth of auto parts from the country. The Indian government is considering reducing import taxes, which have hindered Tesla's entry into the market. An official announcement is expected in January 2024.

FutureCar Staff Nov 22, 2023 5:16 AM PT

Tesla's plans in India have sparked renewed interest, as the company engages in discussions about investing billions of dollars in the country.

On November 6, various government departments in India held discussions on policy changes that would impact electric vehicle manufacturing. These discussions included Tesla's investment proposal and the necessary steps the Indian government would need to take for its approval.

Recently, more details have emerged regarding Tesla's investment plans in India. Bloomberg reports that Tesla is allegedly planning to invest around $2 billion initially to establish a new plant in the country. Additionally, Tesla is considering purchasing approximately $15 billion worth of auto parts from India. The company is also exploring the possibility of manufacturing batteries in India as a means to reduce costs.

Last week, government officials in India deliberated Tesla's request to reduce tariffs for imported cars, specifically electric vehicles. The Indian government contemplated implementing a sunset clause that would extend tariff concessions to all electric vehicles imported into the country, not just Tesla cars.

Historically, India's high import taxes on foreign vehicles have posed a significant barrier for Tesla's entry into the market. However, with the local government now considering a reduction in import taxes, Tesla's plans for India may finally come to fruition.

An official announcement regarding Tesla's investment plans in India is expected to be made at the Vibrant Gujarat Global Summit in January 2024. Elon Musk had previously mentioned Tesla's intentions to make significant investments in India in June, and he is scheduled to visit the country in 2024.

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Tesla India deal reignites with billions worth of investment on the table