Tesla to search for sites in India to set up $2-3 billion EV plant: Report
New York: Prime Minister Narendra Modi with Tesla and SpaceX CEO Elon Musk. (Photo: IANS/PIB) New Delhi, April 3 (IANS) After the Prime Minister Narendra Mo Tesla is reportedly planning to send a team from the US to study sites in India for a $2-3 billion electric vehicle plant. The move comes after the Prime Minister Narendra Modi-led government approved a new electric vehicle (EV) policy to attract investments in the EV space. The team will reportedly focus on states like Maharashtra, Gujarat and Tamil Nadu with EV infrastructure and ports that make it easier for the company to export cars. The new EV policy, which includes reducing the customs duty to 15%, has paved the way for Tesla's entry into the Indian market. The government requires a minimum investment of Rs 4,150 crore (about $500 million) to set up manufacturing facilities and production within three years and reach 25% DVA (domestic value addition) within five years.
Published : a month ago by Rinku in Auto
New Delhi, April 3 (IANS) After the Prime Minister Narendra Modi-led government approved a new electric vehicle (EV) policy to attract investments in the EV space by global manufacturers, Tesla is reportedly sending a team this month to search for locations in the country for a $2-3 billion plant.
According to a report in The Financial Times on Wednesday, citing sources, the Elon Musk-run company “would send a team from the US by late April to study sites for the plant”.
The team would reportedly focus on states like Maharashtra, Gujarat and Tamil Nadu which have EV infrastructure in place as well as ports which makes it easier for the company “to export cars”.
Tesla did not comment on the report.
In the new EV policy, the government has reduced the customs duty to 15 per cent, with certain riders.
This now paves the way for Musk to enter the Indian market.
Last year, PM Modi met Musk in the US and appreciated his efforts at making technology accessible and affordable in various sectors.
The Prime Minister invited Musk to explore opportunities in India for investments in electric mobility and the rapidly expanding commercial space sector.
In the new EV scheme, the government mentioned that a minimum investment of Rs 4,150 crore (about $500 million) will be needed to set up manufacturing facilities and production started within three years and reach 25 per cent DVA (domestic value addition) by three years and 50 per cent DVA within 5 years at the maximum.