Tesla, which has applied to the establishment of a fully owned subsidiary in India in April, will hopefully start retail operations. The company is headed by Elon Musk, who seeks to sell an EV costing less than $25,000 under Rs 22 lakh.
Also, Musk is actively pursuing concessions in the present 70% of customs duties charged on high-end imports. It is anticipated that the company will source parts worth more than $1 billion from Indian suppliers throughout India to establish the market in India.
Prime Locations in India for Tesla
Prime locations have already been selected for showrooms in Mumbai’s Bandra-Kurla Complex (BKC) and New Delhi’s Aerocity. To be able to start operations in India, Tesla is considering importing cars from its Berlin Gigafactory.
Although there is still no concrete plan for local manufacturing, the company has been scouting land parcels in Maharashtra for setting up a potential plant.
Indian Government’s Take
The Indian government has reduced customs duties from 110% to 70% on high-end cars priced above $40,000; such action comes in line with Tesla’s interest in the Indian market. Another round of trade talks between India and the United States is slated for next week, with the Commerce Ministry having called for an Inter-Ministerial Meeting to discuss tariff and trade relations. This follows impeachment tariffs imposed by the Trump administration.
Job Opportunities by Tesla
In addition to above, Tesla has sped up hiring in India by posting as many as 13 new job postings on the LinkedIn site. The sudden activity happened following a key meeting between Musk and Indian PM Narendra Modi earlier this month, where the two leaders had an extensive discussion on deepening bilateral trade ties.
Media reports are also doing the rounds suggesting that Musk might accompany US President Donald Trump on his envisaged visit to India later this year. It is big to deliver to India with its affordable model and sustained approach: Tesla.
