Tesla India investment deal revives with significant funding at stake

author: FutureCar Staff    

Tesla's plans in India have once again sparked interest, as the company is discussing a substantial investment in the country. On November 6, Indian government departments engaged in discussions regarding policy changes that would impact electric vehicle manufacturing. These discussions included Tesla's investment proposal and the necessary steps for government approval.

Recent reports have shed light on the details of Tesla's investment proposal in India. It is rumored that Tesla plans to invest around $2 billion initially to establish a new plant in the country. Additionally, Tesla aims to purchase approximately $15 billion worth of auto parts from India. The company is also considering the production of batteries in India as a means to reduce costs.

Government officials in India recently evaluated 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 limited to Tesla cars.

The high import taxes on foreign vehicles in India have historically posed a challenge for Tesla's entry into the market. However, with the local government now contemplating a reduction in import taxes, Tesla India may finally become a reality.

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 in June his intentions to make significant investments in India and plans to visit the country in 2024.

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

FutureCar Staff