Tesla will set up a car manufacturing plant in Gujarat
Tesla will set up a car manufacturing plant in Gujarat
Elon Musk's electric vehicle (EV) manufacturing company Tesla Inc. will build its car manufacturing plant in Gujarat. According to reports, the official announcement is expected to be made at the Vibrant Gujarat Global Summit in January 2024.
According to a report in Ahmedabad Mirror, the announcement of setting up a Tesla plant in Gujarat will be made in the presence of the company's CEO Elon Musk. India will allow this American EV company to import electric vehicles in the country from next year and set up a manufacturing plant within a period of two years.
Tesla aims to meet domestic and international demand from Gujarat plant
According to the report, Gujarat's strategic location and business environment have made it the preferred location for Tesla's manufacturing plant. The state government has presented Sanand, Dholera and Becharaji as options for the location of the plant. Tesla aims to meet both domestic and international demand from the Gujarat plant.
News about Tesla's plans for India have been doing the rounds for quite some time. Many of these reports reveal the US automaker's demand for concessions and reduced regulatory rules for Tesla to operate in the country.
Tesla will be allowed to import cars at a concessional import duty of 15-20%
Meanwhile, top government officials told Business Today last month that Tesla may be allowed to import fully built cars at concessional import duty of around 15-20% that is applicable on such imports. Much less than the current 100%.
This will depend on Tesla setting up a manufacturing plant in India. Officials had said that if Tesla fails to meet the condition, India will take steps to recover the entire duty benefit from the company.
Indian EV makers like Tata Motors and M&M raised questions as to why Tesla should be given any special treatment. Other auto companies like Maruti Suzuki, Tata Motors and MG already have manufacturing plants in Gujarat.
Musk said- He is planning to come to India next year
Elon Musk had also said that he is planning to visit India next year. The report says that Tesla is planning to initially invest about $ 2 billion i.e. about Rs 16,000 crore for the new plant in India.
He also plans to buy auto parts worth up to 15 billion dollars i.e. about Rs 1.2 lakh crore from India. The company is considering manufacturing some batteries in India to reduce costs.
Piyush Goyal visited Tesla's manufacturing facility
Recently, Commerce and Industry Minister Piyush Goyal visited Tesla's manufacturing facility in California. However, company owner Elon Musk was not present during this period. He wrote in an ex-post - 'It is an honor to have you in Tesla! I'm sorry I couldn't come to California today, but I hope to see you in the future.
While sharing the pictures, Piyush Goyal wrote on Goyal Remembered the magnetic presence of Elon Musk and I wish for his speedy recovery.
Elon Musk met Prime Minister Modi in June this year
In June this year, Tesla CEO Elon Musk met Prime Minister Narendra Modi in New York. After this meeting, Musk had said – India has more possibilities than any other big country in the world. I am excited about the future of India. I am a fan of Modi. It was a great meeting and I like him a lot.
PM Modi also tweeted the picture of this meeting and wrote - 'It was a great meeting with you today, Elon Musk. We talked about issues ranging from energy to spirituality.
Last year there were no talks between Tesla and the government
- Last year, Tesla had expressed its desire to come to India, but talks did not work out between the company and the government. Tesla had asked the government to reduce the import duty on fully assembled vehicles from 100% to 40%.
- The company wanted its vehicles to be considered electric vehicles and not luxury, but the government had said it had no intention of waiving or reducing import duty on any electric vehicles imported from other countries.
- The government had said that if Tesla committed to setting up a manufacturing plant in India, then exemption on imports would be considered. However, Musk wanted cars to be sold in India first, only then the idea of setting up a plant would be considered.
- Also, while replying in a tweet on May 27, 2022, Elon Musk had said, 'Tesla will not set up a manufacturing plant in any place where it is not already allowed to sell and service cars.
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