PM Modi resolves to bring Tesla on Indian roads soon, company looking for land for factory
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New Delhi: It was in 2015, when Prime Minister Narendra Modi visited the Tesla facility in Palo Alto, California and Elon Musk took him on a tour of its electric car plant and assured the PM that electric vehicles were going to be made. After almost a decade, Tesla is ready to come and manufacture in India. The tech billionaire is sending a team of experts to scout for a possible location to eventually set up a $2-3 billion EV plant in the country.
Reports say that top of the Tesla CEO’s mind are three states – Gujarat, Maharashtra and Tamil Nadu – which have EV infrastructure, as well as ports, which would make it easier for the electric car giant to export cars. Let’s make.
Musk credits PM Modi’s consistent efforts in convincing him to look at India as his next big destination for setting up a Tesla Gigafactory and exporting EVs to the rest of the world. In June last year, PM Modi had met Musk in the US and appreciated his efforts in making technology accessible and affordable in various sectors.
The Prime Minister invited Musk to explore opportunities in India for investment in the electric mobility sector. After meeting the Prime Minister, Musk started exploring setting up his own supply chain ecosystem in India to produce affordable electric cars, the price of which could start from Rs 20 lakh.
In Musk’s words, he (PM Modi) really cares about India, because he is pushing us to make significant investments in India, which is something we intend to do and we just want the timing to be right. Trying to find out.
PM Modi really wants to do the right thing for India, the billionaire told reporters after meeting the PM. He wants to ensure that the benefits of investment go to India.
He said, India has more possibilities than any other big country in the world.
Last November, Union Minister Piyush Goyal also visited Tesla’s state-of-the-art manufacturing plant in California. He posted on Twitter that it is extremely heartening to see talented Indian engineers and finance professionals working in senior positions and contributing to Tesla’s remarkable journey to transform mobility.
The Union Minister had said, it is proud to see the increasing importance of auto component suppliers from India in the Tesla EV supply chain. It is on track to double its component imports from India.
However, the Tesla owner had apologized to Goyal that he could not meet him due to ill health.
In the new EV policy announced last month, the PM Modi-led government has reduced the customs duty to 15 percent with some conditions. A minimum investment of Rs 4,150 crore (about $500 million) will be required to set up an EV manufacturing plant, with production to commence within three years and 25 per cent DVA (domestic value addition) in three years and 5 per cent production as per the new EV policy. Within 50 percent DVA will be reached.
This has now cleared the way for Musk to enter the Indian market.
According to a recent report by Bain & Company and Bloom Ventures, India’s EV market has the potential to reach over 40 per cent penetration with revenues of $100 billion by 2030. This growth is expected to lead to more than 20 per cent penetration in the two-wheeler (2W), three-wheeler (3W) and four-wheeler (cars) categories.
India is also making progress in building out its EV charging infrastructure to phase out diesel vehicles in a stipulated time frame. Additionally, government initiatives such as the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles (FAME) scheme have further encouraged EV adoption.
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