Tesla Inc is reportedly all set to revolutionise Indian electric car market with an entry-level model that would have a price tag of Rs 20 lakh
After years of anticipation, Tesla, the renowned electric vehicle (EV) manufacturer led by Elon Musk, is finally making significant strides towards establishing a manufacturing presence in India. The company has entered discussions with the Indian government to install a car factory with an annual production capacity of up to 5 lakh vehicles. Excitingly, these vehicles are expected to be priced starting from Rs 20 lakh. While details of the upcoming car aren’t available, it’s likely to be a version of the sub-Model 3 car purported to launch as the Model 2.
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The Rs 20 Lakh Tesla Electric Car
Internationally, Tesla Inc will introduce a yet-to-be-named entry-level model to rival the likes of the Renault 5 and VW ID.2. Musk has already dropped clear hints of an aggressive USD 25,000 price tag (Approx Rs 20,50,000). The new car will likely have a hatchback body type, which makes sense since it would be positioned below the Model 3. World over, the Model 2 will aim to capture a broader market segment and make electric mobility more accessible. In India, though, a Rs 20 lakh price tag should make it a viable alternative to premium EVs like the MG ZS EV and Hyundai Kona Electric. While still costlier than the likes of Tata Tigor EV, the Model 2 would certainly become a foot-in-door approach for early adopters wishing to get a taste of upmarket, world-class electric cars.
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Tesla’s Indian Factory and Export Plans
Tesla’s decision to establish a manufacturing hub in India aligns with its plan to diversify production bases beyond China. It’s also in sync with the carmaker’s long-harboured dream of tapping into the burgeoning Indian market. Furthermore, the Indian factory may also serve as an export base for Tesla’s electric vehicles destined for countries in the Indo-Pacific region.
“He (Mr Modi) really cares about India because he’s pushing us to make significant investments in India, which is something we intend to do. We are just trying to figure out the right timing … I am confident that Tesla will be in India and will do so as soon as humanly possible,” Elon Musk had commented last month.
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Previous Challenges and Current Opportunities
Tesla’s journey towards setting up operations in India has not been without obstacles. In the past, the company’s demand for special incentives to import cars at lower duty rates was immediately rejected. Meanwhile, the Indian government stood firm on its stance that Tesla should manufacture cars locally to promote domestic production. Now, with Tesla actively engaging in discussions with the government and expressing interest in investing in India, the tides have turned. This development not only highlights the government’s commitment to the “Make in India” initiative but also underscores India’s potential as a manufacturing hub and a major market for electric vehicles.
Tesla’s intention to establish a car factory in India and launch a Rs 20 lakh electric vehicle is a significant milestone for the Indian automotive industry and the country’s sustainable mobility ambitions. As India embraces electric mobility, Tesla’s entry into the market is expected to catalyze the adoption of electric vehicles and contribute to the reduction of carbon emissions.
