Tesla in the U.S., which is on the verge of reverse growth due to China’s low-cost offensive and slowing demand for electric vehicles, is reportedly planning to enter the Indian market in earnest.
Citing multiple sources, the British Financial Times (FT) reported on the 3rd (local time) that Tesla will send an investigation team from the United States to India this month regarding the establishment of an overseas production plant. The investigation team, which will be sent by the end of this month, plans to search for local production plant sites, mainly in areas where automobile production hubs have already been formed, such as Maharashtra and Gujarat in western India and Tamil Nadu in the south, sources said. According to sources, Tesla is considering the area around New Delhi, the capital of India, and the area near the port.
Tesla reportedly explained to the Indian government that it is considering producing a small electric vehicle priced at less than $30,000 at a factory in India, which is cheaper than the current model. Tesla is developing a low-cost model called Model 2 with the goal of selling it next year.
Meanwhile, the FT pointed out that Tesla’s dispatch of the inspection team comes after the Indian government announced a “conditional” cut in import duties. The Indian government has lowered the import duty of electric vehicles to 15 percent for car manufacturers, which pledged to invest at least 500 million dollars in India and start producing electric vehicles within three years. Tariffs on existing imported electric vehicles were 70 to 100 percent. However, the number of electric vehicles that can be imported with the lowered duty is limited to 8,000 vehicles per year.
JENNIFER KIM
US ASIA JOURNAL
