Tesla is reportedly considering a substantial investment of up to $2 billion for establishing a manufacturing facility in India. However, this is contingent on the Indian government’s willingness to reduce import duties on Tesla vehicles to 15% during the initial two years of operations. The move comes as part of India’s efforts, outlined in an August report, to formulate a new electric vehicle (EV) policy aimed at significantly lowering import taxes, potentially down to 15%.
According to sources, Tesla is open to committing $500 million if the reduced duty applies to 12,000 vehicles. This investment commitment would escalate to $2 billion if the concession extends to cover 30,000 vehicles. While the government is currently evaluating the feasibility of Tesla’s $2 billion investment proposal, discussions are also revolving around adjusting the number of vehicles eligible for the reduced duty.
As of now, key stakeholders involved in the matter, including Tesla and relevant government ministries such as the department for promotion of industry and internal trade, ministry of heavy industries, ministry of road transport & highways, and the ministry of finance, have not provided official comments on the ongoing discussions.
Note: The Economic Times initially reported on Tesla’s potential investment plans, but neither Tesla nor the government entities officially announced this.
