Tesla may enter India next year, deal for electric cars in final stage: Report

Elon Musk's company Tesla Inc., which manufactures electric vehicles (EVs), may enter India next year.

Tesla's manufacturing factory contract deal with India is in the final phase. After this agreement, Tesla will be able to set up a factory for electric car manufacturing in India from next year.

People familiar with the matter said that it may be announced in the 'Vibrant Gujarat Global Summit' in January next year.

Along with Gujarat, names of Maharashtra and Tamil Nadu are being discussed for factory setup. Because these states have a good ecosystem for electric vehicles and exports. At the same time, recently Elon Musk had also said that he is planning to visit India next year.

According to the report, Tesla may agree to an initial investment of $ 2 billion (about Rs16,000 crore) to setup the plant. Also, a target can be set to buy auto parts worth about 15 billion dollars (Rs1.2 lakh crore) from Indian companies. The company will manufacture some batteries in India, so that the cost can be reduced. Experts said that the final decision has not been taken yet. There may also be some changes in the plans.

In June this year, Tesla CEO Elon Musk had talked about big investment in India. He had also reiterated his desire to visit India in 2024. At present, India's Ministry of Heavy Industries has not given any reaction on the matter.

India is the third largest vehicle market in the world. At present the EV market has not gained much momentum, according to Bloomberg NEF the number of EVs in total vehicles is only 1.3%. The high price of electric vehicles and lack of charging stations are becoming major obstacles. However, vigorous efforts are being made to develop EV infrastructure.

According to the report, Elon Musk had criticized India for its Electric Vehicle (EV) policy and very high import taxes. Due to this, Tesla is not able to sell cars in India by bringing them from outside. In response, India advised Tesla and Musk not to import and sell cars from China and laid emphasis on local manufacturing. India is now planning to reduce import taxes for those international EV manufacturers who plan to produce in India in the future.