India to Sign Deal with Tesla Inc. for Factory Establishment and Vehicle Imports: Reports

Business View
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New opportunities to work with a top automotive company in India are on the way. According to multiple reports, India is on the verge of signing a deal with Tesla Inc. which is planning to establish a factory in the nation. The report states that the American automaker would allow its firm to import its eclectic vehicles into the nation. This import will happen at the beginning of the next year and after that, the automaker company will set up a manufacturing plant. As we mentioned above, the import will happen at the start of January 2024 and the manufacturing unit will be established within 2 years. The reports have been shared by the sources of Bloomberg. 


However, the official announcement regarding this financial deal has not been made yet but it is expected to be announced at the upcoming event of the Vibrant Gujarat Global Summit. This event will happen in January 2024 and the reports further claim that the states of Tamil Nadu, Gujarat, and Maharashtra are being considered for the establishment of the manufacturing unit. These states are famously known for their well-established infrastructure. The investment of Tesla in India will surely help to generate employment possibilities as well as boost economic growth. 


The shared reports of Bloomberg state that Elon Musk-owned automaker company is planning to invest around $2 billion at first. This investment will be used to set up a factory in the nation. Not only this, Tesla Inc. is also planning to purchase auto parts from the nation which is worth up to around $15 billion. In order to reduce manufacturing costs, the company is thinking of making some batteries for electric vehicles in India. However, this news is yet to be announced which means this plan or investment is not final yet which indicates that it can be changed. The CEO of Tesla mentioned in June that the automaker company has the intention to make a “significant investment” in India and he is also planning to visit India by next year (2024). 


However, there have been no official comments regarding this thing. Last year, EV cars manufactured only 1.3% of all passenger vehicles. The reason behind this is identified due to the price as we all are aware that electric cars are quite expensive plus it is hard to find charging stations easily. Only a few charging stations are available. At present, The American automaker company does not directly import cars into India due to the high tariffs. But when its first locally made cars go on sale, they could cost as little as $20,000. It is worth noting that Union Minister Piyush Goyal has visited the Tesla manufacturing unit in Fremont.


He visited Fremont last week to meet Elon Musk but sadly, the meeting did not happen because of the health issue of Musk he promised to meet him soon. Due to the absence of Elon Musk, the elected representative of India met the top leadership from India including engineers and researchers from India at the Tesla factory. Let’s wait for the official announcement from the side of the Ministry of Heavy Industries of India and from the side of Tesla too. To know more such news just stay tuned with us. 

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