Tesla, the largest EV maker in the world, is planning to commence manufacturing and sales operations in India while BYD is struggling to strike a deal with the government. It has been a long time since Tesla has been meaning to sell its EVs in our market. However, there were delays for various reasons. Still, top Tesla officials have visited India on multiple occasions to discuss its investment plans. Moreover, during PM Modi’s recent visit to the US, he had a dialogue with Elon Musk. The latter mentioned that he wishes to invest in India. Amidst all this, the Chinese auto giant, BYD is having to step back on its plans of investing in India.
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Manufacturing Plans of Tesla and BYD in India
After the recent interaction of Elon Musk with PM Modi, things look promising for the American EV giant. As per the latest reports, Tesla officials are having closed-door conversations with the Indian government authorities regarding its plans to manufacture and sell EVs in India. As Tesla expands its global operations, it wants to improve on the existing Shanghai factory. India is a great alternative to setup up a Giga factory. It has the potential to emerge as a major export hub for Tesla in times to come. Indian government is asking Tesla to operate in India in partnership with the local players.
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On the other hand, BYD, which is already selling its electric cars in India, is striving to seek government permission to invest $1 Billion in India. It had filed for permission almost a year ago. But it is yet to receive the approvals. The Indian government is understandably reluctant to bring Chinese companies to India following the border clashes between the armies of the two nations back in 2020. Now, BYD might have to watch Tesla take its place in our market, judging by the latest news.
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Indian Automobile Market
Recently, India became the third-largest automobile market in the world. The EV segment is growing at an exponential pace in the last couple of years. While the relatively affordable EV market is captured by Tata Motors, the higher end boasts all sorts of EVs from many international car marques. Hence, Tesla could easily fit in. In fact, if it makes cars in India, it will be able to offer its products to Indian customers at competitive prices. Thereafter, Tesla aims to flood various global markets with inexpensive EVs. We shall keep an eye out for the latest developments in this space.
