Elon Musk-led Tesla Inc is looking to set up a $2 billion to $3 billion electric car plant in India, with its team visiting the country later this month to look for suitable locations. According to a report in the Financial Times, the electric vehicle (EV) maker will focus its site search on states with established automotive hubs, especially Maharashtra, Gujarat, and Tamil Nadu.
Tesla’s quarterly report
The decision comes amid recent reports of a significant decline in Tesla’s March quarter sales. The company revealed that it delivered 386,810 vehicles globally from January to March, down about 9% compared to the same quarter last year. Factors contributing to this decline include increasing competition in the global electric vehicle market, slow growth in EV sales worldwide, and unsuccessful price cuts to attract new buyers.
Model performance and market dynamics
While Model 3 and Y deliveries experienced a 10.3% year-over-year decline to 369,783 units, the new Cybertruck as well as other models like the older It became 17,027 units.
Exploring India’s EV landscape
In light of India’s push toward electric mobility, the government recently reduced import taxes on select electric vehicles manufactured by companies committed to investing at least $500 million and starting manufacturing operations within the country within three years.
Is done. Tesla’s interest in setting up a manufacturing facility in India dates back to July last year when the company expressed its intention to build a factory to make electric vehicles for $24,000.
Tesla’s commitment to the Indian market
Additionally, there are ongoing discussions about lower taxes on higher-priced models targeted for the Indian market, indicating Tesla‘s commitment to establishing a presence in India. After a meeting with Prime Minister Narendra Modi in June last year, Elon Musk expressed confidence in Tesla’s entry into the Indian market and stressed the company’s eagerness to start operations in India as soon as possible.
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