India and Tesla inching closer to a 'Make In India' deal: Report
New Delhi: India is nearing a deal closure with Elon Musk’s Tesla Inc. to enable the American automaker to export its electric vehicles to the country starting next year and establish a manufacturing facility within two years, Bloomberg reported citing sources familiar with the developments.
An official announcement may be made during the Vibrant Gujarat Global Summit in January, as per an anonymous source due to the confidential nature of the discussions, said the report, citing the people.
Gujarat, Maharashtra, and Tamil Nadu are being considered as potential locations for the factory, given their well-established ecosystems for electric vehicles and exports.
According to the report, Tesla is expected to make an initial investment of approximately $2 billion in the plant, and the company aims to increase its procurement of automotive components from India to potentially reach $15 billion.
Tesla also wants to explore local battery production in India to bring down costs, stated the report.
After a year-long deadlock, Tesla and India, the world's third-largest automobile market, resumed discussions in May.
While Elon Musk has criticised India's sky-high import taxes and electric vehicle (EV) policies, India cautioned Tesla against selling cars in the country that are manufactured in China.
However, India is now mulling a reduction in import taxes for global EV manufacturers for a period of five years, provided these companies make a firm commitment to establishing local manufacturing units, according to reports.
The report added that Tesla's India-manufactured vehicles may be priced as low as $20,000 in the local market.
IBNS
Senior Staff Reporter at Northeast Herald, covering news from Tripura and Northeast India.
Related Articles
CRR cut, AI ethics push, and SORR benchmark: Experts hail RBI’s pragmatic policy moves
Mumbai: The Reserve Bank of India (RBI) has kept the repo rate unchanged at 6.5% while the cash reserve ratio (CRR) has been slashed by 50 basis points to 4 percent, media reports said.
JP Morgan gives 'overweight' rating to Adani Group bonds
Mumbai: US investment bank JP Morgan has assigned an 'overweight' rating to four bonds issued by the Adani Group, citing the group's capacity to scale and grow through internal cash flows, which reduces the likelihood of credit stress.
LG Electronics files DRPH with SEBI; IPO size expected to be over RS 15,000 cr
Mumbai: South Korean electronics giant LG Electronics has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on Friday for the proposed public listing of its Indian business, according to a notification on the Bombay Stock Exchange (BSE).
De-dollarisation not on India's agenda; derisking domestic trade is: RBI Governor Shaktikanta Das
Mumbai: India has not initiated any steps towards de-dollarisation and is solely focused on mitigating risks to domestic trade from geopolitical uncertainties, Reserve Bank of India (RBI) Governor Shaktikanta Das clarified on Friday, media reports said.
Latest News
Centre clears 3% DA hike for govt staff, pensioners ahead of festive season
After backlash over ‘trophy stealing act’, Mohsin Naqvi hands Asia Cup to UAE board; BCCI seeks impeachment
Teen batter Vaibhav Suryavanshi slams record-breaking century in Australia
Priyanka Chopra looks stunning in traditionals during her visit to Kajol-Rani Mukerji's Durga Puja celebrations
