Elon Musk, the visionary CEO of Tesla, underscores India’s role in the global electric vehicle (EV) landscape, emphasizing the natural progression towards electric mobility in the country. In a recent X Spaces session with Nicolai Tangen, CEO of Norges Bank Investment Management, Musk expressed his conviction that India, as the world’s most populous nation, should embrace electric cars just like any other nation. He sees it as inevitable that Tesla will provide its renowned electric vehicles (EVs) to the Indian market.
With Tesla’s imminent entry into India, Musk’s statements align with the nation’s evolving stance on EVs. Reports suggest Tesla is actively scouting for suitable locations to establish a state-of-the-art manufacturing plant, with Maharashtra and Gujarat extending lucrative land offers for this purpose. The proposed investment is estimated to range between $2 to $3 billion, reflecting Tesla’s commitment to catering to both domestic and international markets.
India’s proactive EV policies further incentivize Tesla’s venture into the country.
The recently introduced EV policy offers incentives for manufacturers, including tariff reductions and land allocation, to promote local manufacturing. Notably, the policy mandates a minimum investment threshold and encourages significant domestic value addition, fostering the growth of indigenous EV technology.
Under the policy, manufacturers are encouraged to achieve 25% domestic value addition by the third year of operation, with this figure set to increase to 50% by the fifth year. Additionally, vehicles valued at $35,000 or more face a 15% customs duty reduction for five years if manufacturing facilities are established within three years.
Tesla’s foray into India is not merely a strategic business move but also a reflection of Musk’s personal interest in the country. Musk has previously expressed his intention to visit India in 2024, following an invitation from Prime Minister Narendra Modi during his visit to the United States. This visit was seen as a precursor to Tesla’s eventual entry into the Indian market.
The partnership between Tesla and India symbolizes a convergence of technological innovation and government initiatives, with the shared goal of accelerating the adoption of sustainable transportation solutions. As Tesla prepares to set foot in India, anticipation grows for the transformative impact it will have on the country’s automotive industry and its journey towards a greener future.
