Tesla wants to set up car and battery factories in India: Union Minister

Just a few days ago, it was reported that top officials from Tesla Inc., the world’s largest electric car manufacturer, would be visiting the country to meet with Indian government officials. The purpose of the meeting is to explore ways for the company to deepen its supply chain in India and diversify from China. In a recent update on this meeting, one of the high-ranking officials in Prime Minister Narendra Modi’s administration stated that Tesla is looking to establish a car and battery manufacturing plant in the country. Additionally, the company is interested in setting up an innovation base in India.

Tesla wants to set up car and battery factories in India: Union Minister
India’s first privately imported Tesla Model X

During an interview with a media outlet, Rajeev Chandrasekhar, a high-ranking official in Prime Minister Narendra Modi’s administration, stated, “They are seriously considering India as a production and innovation base.” He further added, “We have signaled to them that the government of India is committed to working together to ensure their ambitions and investment objectives in India are successful.”

The official also mentioned that Tesla is exploring options for setting up production plants for electric vehicles and batteries in India. He further noted that they had extensive discussions on cars and manufacturing technology. However, he concluded by stating that further details of the talks cannot be made public. Prior to Chandrasekhar’s comments, the Indian deputy minister for technology also stated in an interview that Tesla, the US electric vehicle (EV) giant based in Texas, is highly committed to making India its manufacturing hub as an alternative to China.

For those who may be unaware, as previously reported on Cartoq, Tesla Inc. has been urging the Indian government to reduce the high import taxes on EVs since 2019. However, the Indian government has remained firm on not doing so. Currently, EVs priced under USD 40,000 are subject to a 60% import tariff in India, while electric vehicles costing more than USD 40,000 face full import taxes.

Tesla wants to set up car and battery factories in India: Union Minister

Pic – Automobili Ardent India ®️

Presently, Tesla’s largest manufacturing plant is the Gigafactory in Shanghai, China. Officially known as Tesla Giga Shanghai, the Gigafactory Shanghai is a massive manufacturing facility that plays a crucial role in Tesla’s global production capabilities. Construction of the Gigafactory Shanghai began in early 2019 and quickly became a significant milestone in Tesla’s expansion plans. The factory covers a vast area of approximately 864,885 square meters (or around 210 acres) and is strategically located in Lingang, Shanghai.

The Gigafactory Shanghai is designed to produce electric vehicles and battery packs. It houses multiple production lines dedicated to manufacturing Tesla’s popular models, including the Model 3 and Model Y. The factory utilizes advanced manufacturing techniques, automation, and cutting-edge technologies to ensure efficient and high-volume production. One of the key advantages of the Gigafactory Shanghai is its proximity to the Chinese market, which is the world’s largest electric vehicle market. By establishing a manufacturing plant in China, Tesla can significantly reduce production costs, avoid import tariffs, and cater to local demand more effectively.