According to a Reuters report, Musk’s latest comment, “It makes sense to offer Tesla electric cars in India” has got Indians excited about the possibility of Tesla coming to India.
Elon Musk suggested that Tesla may start selling cars in India. They are looking for places to build factories in different states. Also, Musk said that they will soon unveil Tesla’s self-driving taxi on a certain date.
Is Tesla finally coming to India? Elon Musk’s hint has fuelled speculation about its India launch
Elon Musk finally discussed a big question. According to Reuters, Musk said that it is natural for Tesla’s cars to come to India. Earlier there were reports that Tesla is looking for a place to build a factory in India. It is being said that Maharashtra and Gujarat have offered land to Tesla to build a factory.
The Tesla team is looking for opportunities to start up in different states of India, especially in Maharashtra, Gujarat and Tamil Nadu, where there are already several car factories. They are doing this even though not many people are buying electric cars right now and there are many other companies to compete with. This is why Tesla did not sell as many cars as they expected in the first three months of this year.
Tesla Engaged in Ongoing Discussions with Indian Government
In early 2022, Tesla CEO Elon Musk said the company would not set up a factory in India unless it was allowed to sell and repair imported cars there.
This shows that there is a difference of opinion between India and Tesla regarding setting up a factory in India.
In April 2022, Nitin Gadkari, India’s Minister for Road Transport and Highways, emphasized favorable conditions for automobile manufacturing in India and welcomed Elon Musk to manufacture electric vehicles in the country.
However, Gadkari also said that if Elon Musk wants to manufacture cars in China and sell them in India, it would not be a good idea for India.
In March 2024, India revealed plans to invest at least $500 million and impose import content on some electric cars for companies that set up steam generation plants within three years.
How will the arrival of Tesla benefit Elon Musk and India?
Elon Musk and the Indian government have been talking a lot lately about Tesla coming to India to sell electric cars. This year is an election year in India and it will be a big deal if Tesla comes as it is a major foreign brand. This matches the Indian government’s goal of attracting foreign companies and providing employment.
Musk initially didn’t like India’s high import duties, but now he has agreed to invest money and set up a factory in India, probably more than a billion dollars. If it wasn’t so high, Tesla would probably have come to India already.