Tesla Plans to Make Low-Cost EVs in India: Report

Tesla’s entry into India has been a matter of great interest in the recent past. There seems to be some movement in that direction with a Reuters news report suggesting that representatives from the Elon Musk-owned electric vehicle brand are set to meet India’s commerce minister this month. A source with direct knowledge revealed the agenda is to discuss plans for building a factory which will help produce the $24,000 EV. That roughly translates to Rs 20 lakh, which will be quite an attractive price tag for Indian buyers. Do note that all the information mentioned in this article based on a report filed by Reuters.

Reuters sources suggested that Tesla representatives will meet Indian commerce minister Piyush Goyal. The conversation will most probably involve the question of setting up an EV supply chain and land allotment for an eventual factory to manufacture low-cost EVs, both for export and the local market. Reportedly, this will be a new car from the ground up and is likely to cost 25 percent lesser than Tesla’s most affordable offering in China; the Model 3 sedan which costs $32,200 (Rs 27 lakh, approximately).

Just last month, Tesla CEO Elon Musk met India’s Prime Minister Narendra Modi and announced that he would make a significant investment in the country. Currently, India is the third-largest automobile market in the world but accounts for less than 2 percent of total sales when it comes to EVs. A manufacturing base for both cars and batteries will serve well with Musk’s intentions to bring down the cost of EVs drastically.

In fact, Tesla claims that it’s next-generation platform will cut production costs by 50 percent, and that multiple models could be potentially built on it. Tesla currently builds EVs in Shanghai, Berlin and the United States. The largest plant as of right now is the one in Shanghai and is responsible for almost 40 percent of Tesla’s total global capacity.