New Delhi, Elon Musk may establish his supply chain ecosystem in India to produce affordable electric vehicles starting at Rs20 lakh after meeting with Prime Minister Narendra Modi in the US last month.
The electric vehicle manufacturer is in talks with Indian officials to build its auto parts and electronics supply chain and seek tax concessions, according to media reports citing government sources.
If all goes well, Tesla may be able to produce 5 lakh electric automobiles per year at Rs 20 lakh.
A typical Tesla electric vehicle costs around Rs30 lakh and above Rs60 lakh with 100% customs duty.
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However, preliminary talks between Tesla and the Indian government may delay the establishment of a Tesla facility. Tesla reportedly meets with Indian business executives.
In June, India’s exports fell 22% to $32.97 billion, a three-year low.
After hearing Prime Minister Modi’s ‘Make in India’ initiative, Musk said his electric vehicle and battery company would come to India “as soon as it is humanly possible.”
Musk told reporters after meeting Modi, “He really cares about India because he’s pushing us to make significant investments in India, which we intend to do; we’re just trying to determine the optimal timing.” Musk, who had previously opposed manufacturing in India, changed his mind. Modi “really wants to do the right thing for India,” he remarked.
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He added that Modi wants investments to benefit India, which is the job. Musk said India has the most promise.
Tesla will follow Apple in diversifying manufacturing away from China owing to geopolitical and supply chain difficulties if it comes to India.