Minister reveals more details about Tesla’s India plans

Multiple states are trying to get Tesla to set shop at their states. Here is Subhash Desai, a Minister of Maharashtra government who has ruled out rumours of Maharashtra losing Tesla’s investment to Karnataka. He also revealed some of Tesla’s plans for the future of India. Earlier it was assumed that Tesla will be entering with only Model 3 in India. However, that is not the case here. Tesla will be bringing six electric vehicles to India  All the vehicles will be brought from the US and Europe and will be sold in India. So, it should be safe to assume that the electric vehicles will be CKD (Completely Knocked Down) units or CBU (Completely Built Units) at first, due to which they will cost more than usual.

Then Tesla will examine which one of them gets the most response. The model that gets the maximum response will be manufactured in India, which should lower the price significantly. After this only they will decide where the manufacturing facility will set-up. However, the manufacturer will set up a workshop and a showroom in Mumbai.

“Tesla has not gone to Karnataka. This is a misunderstanding. Tesla has decided to set up a workshop and a showroom there. Such a showroom will also open in Mumbai. They want to start a manufacturing facility in the country. However, before launching a full-fledged manufacturing plant, they want to showcase six electric vehicle models in India to see which of them will get maximum response. So, they are first going to sell. These cars on sale will be brought from the US and Europe and sold here. They will select one of the cars to be manufactured in India for the Indian market and then decide where to set up their manufacturing facility,” said Desai.

Pooja Batra Tesla Model 3

Tesla currently has 4 models in their line-up. There is the Model 3 which is the entry-level Tesla, then there is the Model Y which is a crossover based on the Model 3. Then there is the Model S which is a performance sedan and the Model X which is an SUV. Currently, only these four vehicles are on sale by Tesla. So, there is a high probability that these vehicles will be launched in India in multiple variants. Tesla has already registered itself as a company in Bengaluru, Karnataka. Tesla has set-up a research and development facility in Bengaluru, which was confirmed by the Chief Minister, BS Yediyurappa on Twitter. The electric manufacturer has set up Tesla India Motors and Energy Private Limited in the Registrar of Companies (RoC). They have also named Vaibhav Taneja, Venkatrangam Sreeram and David Jon Feinstein as three directors of the company.

Subhash Desai said “The decision on where this will be set up is still not taken. Our discussions with Tesla representatives is under way. Aaditya Thackeray (cabinet minister of tourism and environment) and I had a video conference with them. I am sure that they are in the know of the industrial ecosystem in the state. Knowing our commitment to businesses, I am confident that they will choose us.”