Tesla likely to open factory in India, will invest 3-5 billion dollars

Tesla: US electric carmaker Tesla is moving ahead with plans to set up its manufacturing facility in India. Company officials will visit India in April, where they will hold meetings with officials from the Prime Minister's Office (PMO) and other key ministries.

The meeting will discuss Tesla's investment plans, potential factory locations and government policies related to electric vehicle (EV) manufacturing in India.

Tesla's investment in India

According to sources, Tesla may invest $3 to $5 billion to set up a manufacturing center in India. The move may be prompted by the new EV policy introduced by the Indian government, which offers concessions in import duty to companies committed to local manufacturing.

New EV policy

According to the new policy of the Indian government, if a company sets up a manufacturing plant in India and invests at least $500 million, it will be allowed to import 8,000 electric vehicles every year at a reduced duty of 15%. However, companies will have to ensure that at least 50% of the investment is made within three years and production starts in the next five years.

      Also Read: Gyanesh Kumar took charge as Chief Election Commissioner, tenure till 2029

Factory can be opened in these cities

Tesla has started looking for potential locations for its factory in India. According to sources, Maharashtra and Gujarat can become major options for Tesla.

Maharashtra: Pune's Chakan Industrial Area and Chhatrapati Sambhaji Nagar (Aurangabad) can be the preferred locations for Tesla. The region is already home to several global car manufacturers.

Gujarat: The state of Gujarat has already attracted large investments from automobile and battery manufacturers, making it another strong contender for Tesla.

     Also Read: Delhi New CM: BJP Parliamentary Board meeting ends after Union Cabinet meeting

Summary

Tesla's plan to set up a factory in India makes it clear that the company is moving towards strengthening its position in India's growing EV market.