According to sources cited by media outlets, representatives from Tesla are set to meet with India's Minister of Commerce and Industry this month to discuss the plan for a local manufacturing plant. This factory would potentially produce a brand-new vehicle priced at $24,000.
Informed individuals have shared that Tesla has expressed interest in establishing a factory in India, dedicated to the production of low-cost electric vehicles (EVs). These vehicles would not only cater to the local market but are also planned for export.
Reports suggest that the vehicle Tesla intends to produce in India would be a new model, priced at 2 million rupees (equivalent to $24,000). This pricing is 25% lower than that of Tesla's current least expensive model, the Model 3, which retails for 231,900 yuan (approximately $32,300) in China.
The insiders also shared that Tesla representatives are scheduled to meet with India's Minister of Commerce and Industry, Piyush Goyal, with discussions expected to revolve around the establishment of an EV supply chain and the allocation of land for the factory.
Earlier this month, Indian media reported that Tesla has begun discussions with the Indian government about setting up a local factory. This plant's electric vehicles would start selling at a price of 2 million rupees, with an annual production capacity of up to 500,000 vehicles.
In June of this year, Tesla CEO Elon Musk met with Indian Prime Minister Narendra Modi, where Musk expressed his intention to make significant investments in India.
India surpassed Japan last year to become the world's third-largest auto market. Data from the Society of Indian Automobile Manufacturers showed that India's new car sales grew by 25.7% year-over-year in 2022, exceeding 4.25 million units.
Currently, Tesla has four vehicle factories located in Shanghai, China, Berlin, Germany, Austin, Texas, and Fremont, California. In March of this year, Tesla announced the establishment of an auto factory in the state of Nuevo León, Mexico.
Of note, Musk revealed a silhouette of the next-generation platform vehicle at this year's Tesla shareholders' meeting. The governor of Nuevo León stated earlier this month that Tesla has finalized the design of its next mass-market EV, tentatively named Model 2, which is projected to become the "best" and "most economical" EV globally.
It has been suggested that Tesla will price the Model 2 between $22,000 and $25,000.
