Tesla officials will reportedly meet Union Commerce Minister Piyush Goyal to discuss plans to set up a factory in India to build electric vehicles (EVs) worth Rs 20 lakh. According to a Reuters report, the US-based company has expressed interest to build its cheapest EV offering for domestic market and exports. The Rs 20 lakh car would be cheaper than Tesla’s current lowest priced Model 3 Sedan Car. It is sold for Rs 26 lakh in China.
The development comes a month after Prime Minister Narendra Modi met Tesla CEO Elon Musk during his state visit to United States. The world’s richest man had said after meeting Indian Prime Minister that his company intends to make a “significant investment” in the country.
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Reuters report stated that the company will discuss the land for a potential plant in India and the process for setting up an EV supply chain in the country. Reports in early June had stated that the company has agreed to set up a vendor base in India.
Currently, the company produces EVs in United States, Germany and China. The plant in China’s Shanghai has the highest share in the company's production supply chain, with the factory contributing 40 per cent to Tesla’s global capacity.
While discussing plans for setting up a production line in India, the company had demanded a reduction in the import duty on completely built units. Currently, the duty is at 100 per cent for cars costing Rs 32.5 lakh and above. The duty is 60 per cent for cars costing less than Rs 32.5 lakh. Reports had indicated that the company is not pushing for slashing import duties now.
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