In April, Tesla officials are scheduled to review the company’s operations and interact with the main government departments, including the Prime Minister’s Office (PMO), the Ministry of Heavy Industries, the Ministry of Land Transport and High Roads (MORT), and the Ministry of Trade, told business sources today.
Tesla Chakan and Sambhaji Nagar, as well as Gojarat, as well as preferred sites for its manufacturing center. The source added that the company is expected to make an initial investment between 3 and 5 billion dollars to establish its production facilities.
Tesla must apply for the EV manufacturing scheme
To take advantage of the decrease in import duties and government incentives, Tesla will have to apply for a plan to promote the manufacture of passengers in India (SPMepCI). This policy, which was notified on March 15, 2024, aims to enhance local EV production.
Under this plan, manufacturers have to:
- Invest at least 4,150 rupees in India
- Achieving at least 25 % of the local value (DVA) by the third year
- DVA increased to 50 % by the fifth year
Another source said: “If Tesla wants to benefit from low import duties, she will have to adhere to manufacturing in India and invest in the local supply chain.”
In 2023, executive officials in Tesla participated with the MDI administration to discuss local components sources, securing the company to office spaces in Pune. Subsequent meetings between Elon Musk and Prime Minister Modi were speculated about Tesla’s entry into India.
In 2024, India made the revised EV policy that offered the duty to import to manufacturers who commit at least $ 500 million in local investments. MUSK was initially expected to announce Tesla investment plans during his scheduled visit to India to India. However, he canceled the trip due to urgent work issues and instead traveled to China.
While the EV market in India is still relatively small compared to China – as 11 million electric cars were sold last year – it is gradually expanding. On the other hand, EV sales in India reached nearly 100,000 units during the same period. Despite this gap, Tesla India is a high -capacity market, given the government pushing clean energy and incentives to accelerate EV’s dependence.