India is a good choice for a new Tesla factory: Elon Musk

• Image Credit: Google

• May 24, 2023 | Dhupali Das

Elon Musk is expected to choose a new location for a Tesla factory by the end of this year, and India...

Digital Desk: Elon Musk is expected to choose a new location for a Tesla factory by the end of this year, and India, if everything goes well, is very much in his plans. In an interview with Wall Street Journal, when asked if India would make a good location for a future Tesla facility, Musk replied, "Absolutely."

In March of this year, Musk selected Mexico as the location for the next Tesla Gigafactory. Tesla has several factories in the United States, including one in Fremont, California. The electric car manufacturer also has factories near Berlin, Germany, and Shanghai, China.

Earlier this month, reports circulated that a team of senior Tesla executives was planning to visit to India to investigate entering the niche EV market and expanding its reach beyond China.

According to a Bloomberg report citing sources, discussions with senior India leadership were to center on the potential for local sourcing of components for Tesla's automobile models.

Musk has repeatedly stated that he experienced difficulties from the government in releasing his products in India. "Tesla isn't in India yet due to "Challenges with the government," he had posted.

Last year, the team he hired in India for 2021 was shifted to focus on the Middle East and larger Asia-Pacific markets.

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Musk was repeatedly urged to bring Tesla to India by a number of influential Indian leaders, but they were unsuccessful.

Currently, India applies a 100% import tax to vehicles costing more than $40,000 (Rs 30 lakh), including insurance and shipping costs. On the other hand, vehicles costing less than $40,000 are subject to 60% import tax.

With a $40,000 (about Rs 30 lakh) price tag, the Tesla Model 3 may remain an accessible model in the United States, but with import charges, it would become unaffordable in the Indian market, with a projected price tag of around Rs 60 lakh.

Reportedly, Musk wanted to launch cars in India, but the country's import duties on electric vehicles are the "highest in the world by far".