SUMMARY
Tesla has submitted a proposal to set up a battery storage system factory in India and has sought a number of incentives for it
The Elon Musk-led company is looking to manufacture and sell its Powerwall in India as part of its plans to establish a broader presence in the country
Tesla, which has been trying to enter the Indian market for years to sell its electric cars, is also in talks with the Indian government to set up a car manufacturing facility
Automotive giant Tesla, which is in talks with the Indian government to set up an electric car manufacturing facility in the country, has now reportedly proposed setting up a battery storage system factory in India.
Tesla has proposed supporting the country’s battery storage capabilities with its ‘Powerwall’ and has submitted a proposal to officials seeking incentives for the factory, Reuters reported.
Tesla’s ‘Powerwall’ is an integrated battery system that stores solar energy for power backup when the grid goes down during outages.
As per a source, Tesla has asked for a number of incentives to set up the battery storage factory but the officials have not agreed to it. However, the government could help the company by creating a fair business model by offering subsidies to the buyers of such products.
The news agency said that Tesla’s Powerwall proposal is part of its plans for a broader presence in the country, going beyond EVs. The Elon Musk-led company is said to be keen on finding residential and industrial customers for its battery storage systems.
“Large policy level calibration will be required. Tesla’s intent is to have the Powerwall business in India,” the source was quoted as saying.
It must be noted that the Indian government has been trying to improve the power supply across Indian towns and villages but continues to face power shortages during peak times and other calamities.
Recently, the Centre also approved the Scheme for Viability Gap Funding (VGF) for the development of Battery Energy Storage Systems (BESS) to develop 4,000 MWh of BESS projects by 2030-31, with financial support of up to 40% of the capital cost.
The scheme is designed to make power supply more eco-friendly with the use of renewable energy sources such as solar and wind power while also providing reliable and affordable electricity to the citizens, the government said.
Tesla’s India Bet
The US-based company has been trying to enter the Indian market with its electric cars for a few years now. However, the Indian government has been focused on boosting local manufacturing for EVs, making it difficult for Tesla to enter the Indian market.
Earlier this year, Musk met Prime Minister Narendra Modi in the US and later announced being optimistic about Tesla’s India entry.
Following that, a report also emerged that India was working on a new EV policy that would reduce import taxes for foreign automakers if they committed to some local manufacturing.
Meanwhile, Tesla has already started looking at ways to set up a manufacturing plant in the country and leased an office space in Pune. It was said to also be in talks with the country to bring its auto parts and electronics supply chain here.
Union Commerce Minister Piyush Goyal recently said that Tesla plans to source components worth $1.7 Bn to $1.9 Bn this year from local vendors after buying $1 Bn worth of components last year.
