Tesla Revs Up India Manufacturing Plans, Meeting With Commerce Minister On The Cards

While Tesla plans to set up a manufacturing plant in India, the senior executives of the company reportedly met Invest India’s new CEO Nivruti Rai on Thursday (July 27). Also, the executives are likely to meet the commerce and industry minister Piyush Goyal soon. 

The Economic Times report said a few other meetings are also lined up in a few days.  

Though the talk points of the meeting is not known, this series of meetings are a follow up on the virtual meeting that happened between Elon Musk and Goyal earlier this month. 

According to the publication, officials of the ministry of commerce and industry, and the ministry of electronics and information technology have been in talks about the EV maker’s plans to start car and battery manufacturing plants in the country since Prime Minister Narendra Modi visited Musk in the US. 

The source informed that talks are being held majorly around the roadmap of launching a manufacturing unit of the EV maker in the country. Currently, the company has factories in China, Germany, the US, Canada, Mexico and the Netherlands.

During the meeting between Musk and Goyal, discussions focussed on setting up a supply chain needed for Tesla’s factory. According to reports, the Indian model would be priced at INR 20 Lakhs ($24,000) and the company is aiming to solely produce low-cost models for exports as well as domestic consumption.

If things go as per the plans, the EV giant could be manufacturing its cheapest cars in India, otherwise the base price of which starts at $45,000. 

The development comes right after the Indian government confirmed that it is not going to offer special treatment to Tesla. “We have told Tesla that the policies, which are already there for all. They can also apply under that PLI. They are welcome. Generally, the policy will be the same for all,” PTI quoted a government official as saying. 

Also, in June this year, a similar statement from the government was reported. Seemingly, the government doesn’t intend to offer special incentives to the EV giant as of now but may offer some concessions to increase competitiveness.