Tesla could have a local manufacturing facility set up in the next two years to produce a made-in-India EV

Back in June 2023 – when the Indian Prime Minister Narendra Modi visited the US – Tesla’s founder, Elon Musk, had met him and confirmed that the EV marque will set foot in India. Fast forward to November and that’s yet to happen but it now seems much more on track. Here’s everything that’s known about Tesla’s India arrival so far:

Possible Reduction In Import Taxes

The discussion around the Indian government’s import rates has been long discussed, which has also been the key reason in the EV maker’s delayed Indian arrival. It now seems that global brands like Tesla could benefit from tax reduction for a period of five years as the Indian government authorities have reportedly agreed upon but only if these EV makers commit to setting up local manufacturing in India.

Local Manufacturing To Be Set Up Soon

There have also been talks about the American EV maker setting up a local manufacturing plant in India within the next two years. Gujarat, Maharashtra and Tamil Nadu are the states that are the frontrunners for having the Tesla facility being established, with a reported investment of more than Rs 16,000 crore.

First Few Models To Be Imports

Given the time that Tesla could take to have a manufacturing hub in India, it is quite possible that the EV maker will first start by importing some of its global products here. While it was eyeing bringing electric cars from China, the recent cross-border tensions are likely to push Tesla to import models from its Germany plant.

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A New EV In The Making

In early 2023, we got to know that there’s a new entry-level electric vehicle being developed by Tesla. This upcoming EV is set to become Tesla’s smallest and most cost-effective model, likely named the ‘Model 2.’ Based on the teaser, it appears to be a tall crossover with a steep roofline and prominent shoulder line. Its design is expected to borrow elements from Tesla’s Model Y and Model 3, the larger models in the lineup.

Which Ones Will Come To India First?

We think models such as the Tesla Model 3 and Tesla Model Y could come to India first via the import route, and both were spied on test a few times already. If reports are to be believed, Tesla could also introduce a small made-in-India EV, which could be priced around the Rs 20-lakh mark (ex-showroom).

When do you want to see Tesla cars on our roads and which one do you think should come first? Let us know in the comments.