In a move that could revolutionize the Indian electric vehicle (EV) market, Tesla is gearing up for its entry into the country in 2024, with the launch of its most affordable model, the Model Y Crossover. According to reports, Tesla is also eyeing Germany for the debut of the same model, marking a significant expansion for the California-based automaker.
The Indian government is reportedly in the final stages of negotiations with Tesla, paving the way for the import of the electric vehicles from 2024 and potentially allowing the company to establish a local manufacturing plant within the next two years. Bloomberg News suggests that an agreement is imminent, signaling a positive development for Tesla's prospects in the Indian market.
The Model Y, a mid-size crossover SUV, was introduced by Tesla in 2020. It is built on the same platform as the Model 3 sedan and is expected to cater to a more affordable segment compared to the mid-sized Model X. The Model Y offers optional third-row seats, providing a seven-passenger seating capacity.
As part of its foray into India, Tesla might need to commit to a substantial investment, with sources indicating a minimum of USD 2 billion (approximately Rs 16,665 crore) for the establishment of a manufacturing plant. Additionally, there are reports that Tesla aims to significantly increase its purchase of Indian auto parts, with plans to source up to USD 15 billion (about Rs 1.2 lakh crore) worth of components.
While Tesla currently operates factories in the United States, China, and Germany, its potential venture in India aligns with the Indian government's push for increased domestic manufacturing of EVs. Prime Minister Narendra Modi has been actively advocating for cleaner transportation, making the country an attractive destination for electric vehicle manufacturers.
Despite the buzz surrounding Tesla's entry into India, the company, led by CEO Elon Musk, has yet to make an official announcement. Speculations suggest that this announcement could be made during the Vibrant Gujarat Global Summit scheduled from January 10-12, 2024. The summit is expected to be a platform for Tesla to outline its plans for the Indian market and potentially unveil its strategy for local production, contributing to India's ambitions of becoming a key player in the global electric vehicle landscape.