Tesla’s Gujarat plant likely to be announced during Vibrant Gujarat in presence of Elon Musk: Report – ET Auto



Tesla doesn’t import cars directly into India because of the high tariffs that are levied.

Prominent electric vehicle maker Tesla’s plans to set up a plant in India will be made public in January during the Vibrant Gujarat Summit in the presence of its CEO Elon Musk, a report said on Thursday. The Ahmedabad Mirror reported that Gujarat fits in well with Tesla’s export-oriented approach which will cater to both domestic and international demand.

Earlier, Gujarat, Maharashtra and Tamil Nadu were being considered by the company given the well-established ecosystems for electric vehicles and exports.

Gujarat government’s spokesperson Rushikesh Patel Patel on Thursday expressed considerable optimism about that Elon Musk, Tesla’s CEO, would consider Gujarat for investment, emphasizing the welcoming stance of the government, news agency ANI reported.

Tesla doesn’t import cars directly into India because of the high tariffs that are levied. The government had said that there is no proposal to provide subsidy on import duty on imports of electric vehicles into the country.

Tesla was willing to invest up to USD 2 billion to set up a local factory in India if the government were to provide a concessional duty of 15 % on imported vehicles during its first two years of operations in India, ET had reported in November.

The Indian government wants to cut the number of cars that are imported at a concessional tariff, in comparison to the numbers proposed by Tesla. Tesla was likely to localise up to 20 % of the value of made-in-India cars in two years which would increase to around 40 % in four years.

India currently imposes a 100 % import duty on cars with cost, insurance and freight value exceeding USD 40,000, and 70 % duty on vehicles cheaper than that.

To start with, Tesla wants to sell its Model 3, Model Y and a new hatchback in India, which are priced at around Rs 32 lakh, Rs 36 lakh and Rs 20 lakh respectively in the United States. Should India grant concessional import duty, the prices of Model 3 and Model Y could be around Rs 38 lakh and Rs 43 lakh respectively, ET reported.

News agency Bloomberg had reported that Tesla could initially commit to a minimum investment of around USD 2 billion and may increase purchases of auto parts from the nation to as much as USD 15 billion.

  • Published On Dec 28, 2023 at 02:56 PM IST

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Tesla's Gujarat plant likely to be announced during Vibrant Gujarat in presence of Elon Musk: Report - ET Auto



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