GG News Bureau
New Delhi, 14th Jan.According to reports, EV giant Tesla is in “advanced” talks to join the Indian market and may be willing to invest up to $30 billion over the course of the next five years.
This development occurs as the Centre approaches the finalisation of a new electric vehicle (EV) policy.
This will be the largest pledge of foreign direct investment in India, if it goes through. In addition to Tesla’s $3 billion investment, other partners in its manufacturing ecosystem will contribute an additional $10 billion to the factory. “An additional $5 billion investment in batteries is planned in parallel, with the potential for growth to $15 billion,” according to individuals familiar with the corporation and those participating in the project’s negotiations. The individual stated, “We are looking at a total of $30 billion.”
One of the main things that would attract Tesla to India will also be the new EV policy, which is now under development. According to the source, Tesla may proceed with its ambitions if the current import tariff structure for electric vehicles manufactured abroad includes a policy of a rebate.
Initially, the business intends to introduce a few of its basic brands into the luxury car market in India. Tesla would begin developing its national charging environment at the same time. A facility “with a high degree of local made-in-India content” may be acquired by the EV major.
According to those with knowledge of the talks, Elon Musk, the CEO of Tesla, is an “admirer” of India and everything that Prime Minister Narendra Modi has accomplished for the nation.
In June of last year, Musk and Modi met in New York. Musk had informed the media during the meeting that Modi was pressuring the automaker to make a “significant investment” in the nation. He said at the time that there might be a future statement regarding this development.
While rejecting the idea of offering incentives tailored to individual companies, Indian officials have insisted that they are still dedicated to encouraging the adoption of electric vehicles throughout the nation.
