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Tesla is currently going around India to look for the most ideal location for its newest plant for electric vehicles. It was reported that the massive facility is worth $3 billion.
As per Electrek, Tesla's deal for its operations in India includes reduced import duties for a limited number of EVs. This will be granted if the company invests significantly and commits to building the country's production plant.
The Hunt for Location Begins
To take advantage of the lower import duties, Tesla was said to Have already formed a team that would be dispatched to India to check out various sites for the factory. The team is expected to land in the country this month and start scouting for locations where the proposed multi-billion EV plant is set to rise.
In picking the areas to be explored, Tesla will focus on Indian states that already have some automotive hubs, such as Gujarat, Maharashtra, and Tamil Nadu. In the meantime, while the facility has yet to be built, the EV maker will sell units in India later this year by exporting those that will come from its plant in Germany.
Tesla Plant a Boost to Indian PM Modi's Manufacturing Plans
Tesla's proposal to set up its newest EV facility in the territory will give Prime Minister Narendra Modi's plans for a local production business a big boost, according to CNBC. Last month, as part of the PM's scheme, the country lowered its import tariffs for some electric vehicles of auto companies willing to invest at least $500 million in the local manufacturing of their products within three years.
"The Government of India has approved a scheme to promote India as a manufacturing destination so that e-vehicles with the latest technology can be manufactured in the country," the officials said last month about the business strategy. Meanwhile, Modi also met up with Tesla's chief, Elon Musk, in June to discuss possible investment opportunities for EVs in India, and it is possible that the meeting played a role in Tesla's decision to build its plant in the region.
Photo by: Willian Cittadin/Unsplash
