Tesla's Low-Cost EVs To Be Manufactured In India - Factory Plans On The Table

Tesla is finally making its way to India. People have been talking about this for a while, but now there are more reliable sources confirming it. There has been news about meetings between Tesla representatives and Indian officials for the past few months.

Tesla is the most celebrated EV maker in the world, with its cutting-edge EV tech and practical range. Auto enthusiasts in India have been eagerly waiting to see these, advanced automobiles on Indian roads.

According to recent developments, Tesla representatives will meet with India's Commerce Minister, Piyush Goyal this month to discuss their ideas for setting up a factory in India. The factory will produce a completely new car model that Tesla calls the "$24,000 car," reported Reuters.

The discussions will represent a sharp reversal for the company after efforts last year to reduce import taxes on EVs shipped to India were scuppered by calls from government officials to commit to making cars locally.

The meeting is going to be crucial for Tesla. Last year the carmaker requested to lower the import taxes on their EVs imported to India, which got denied. The government officials insisted they produce cars locally, which led to a complete turnaround in their strategy.

The upcoming meeting would be the most significant discussion between the company and the Indian government since, Elon Musk, met with India's Prime Minister, Narendra Modi, and expressed his intentions to make a substantial investment in India, back in June.

According to the Times of India, Tesla's representatives have talked about a new EV that would cost around Rs 20 lakh, which is approximately $24,000. This new car would be 25% cheaper than Tesla's current lowest-priced model, Model 3, which sells for about $32,200 in China.

Since the beginning of the year, Tesla has been offering significant discounts on its current car models. The company has also mentioned that its upcoming vehicle platform will help reduce production costs by 50 per cent.

Tesla currently produces EVs in California and Texas. Outside North America, it has plants in Berlin and Shanghai. A Tesla plant under construction in Mexico will produce vehicles on that lower-cost, high-volume platform, which the company has said it will take to other factories as well.

Tesla currently has manufacturing facilities in California, Texas, Berlin, and Shanghai. The Shanghai facility is the largest in capacity and contributes around 40 per cent of overall production. In addition to this, a new facility is also under construction in Mexico.

Thoughts On Tesla Manufacturing Affordable EVs In India

Tesla's most affordable electric car could be a game-changer for the country's electric vehicle market. Local manufacturing will not only make Tesla cars more accessible but will also reduce hefty import duties and costs, making the cars more competitive in the Indian market.

With the car maker's advanced technology and brand image, Tesla could encourage more people to switch to EVs and contribute to India's efforts in reducing carbon emissions and promoting sustainable transportation.