‘Natural progression’: Elon Musk’s big hint on India entry amid reports of Tesla scouting factory locations
Upstox
2 min read • Updated: April 9, 2024, 3:23 PM
Summary
"India is now the most populous country in the world, based on population. India should have electric cars just like every other country has electric cars,” Musk said, during a Spaces session on X. The remarks come in the aftermath of India announcing a new electric vehicles policy that reduces the custom duty on imports to 15% if the EV maker sets up a local manufacturing unit.
Tesla’s arrival into India will be a “natural progression”, the company’s chief executive officer Elon Musk said, while speaking on a live session on his social media platform X. His remarks come amid reports that say that Tesla has begun scouting land in the country for factory locations.
"India is now the most populous country in the world, based on population. India should have electric cars just like every other country has electric cars,” Musk said, while speaking to Norges Bank Investment Management CEO Nicolai Tangen during a Spaces session on X.
“It's a natural progression to provide Tesla electric vehicles in India,” Musk added during the conversation. He added that in the future, "all vehicles will go electric and it is just a matter of time."
Is Tesla scouting for land in India?
According to news agency ANI, Tesla has sent representatives to India to scout for land for setting up a manufacturing plant. The proposed plant will involve an investment to the tune of $2 billion to $3 billion, the report said, citing sources.
The governments of Maharashtra and Gujarat have extended offers to the EV giant for the setting up of the proposed plant, the sources further told ANI. The development was not officially confirmed.
The news, however, comes a couple of weeks after the Indian government unveiled a new EV policy, allowing global manufacturers to enter the domestic market with a minimum investment of $500 million.
The EV players would be given three years to set up manufacturing facilities in India, and to start commercial production of e- vehicles, and reach 50% domestic value addition (DVA) within five years at the maximum.
The customs duty for these automakers would be reduced to 15%, as against 70-100% currently levied. However, the rate would be reduced only on the import of vehicles priced at $35,000 or above.
The policy was expected to address the concerns raised by EV makers including Tesla over the high custom duty. Musk had, in 2021, publicly stated that Tesla would set up a factory in India if the import duties are slashed by the government. "We want to do so, but import duties are the highest in the world by far of any large country," he had said.