Entrepreneur extraordinaire Elon Musk is poised to make his inaugural visit to India later this month, sparking anticipation among Tesla enthusiasts and industry watchers alike. With all eyes on the billionaire’s rendezvous with Prime Minister Narendra Modi and key stakeholders, the burning question on everyone’s mind is: When will we see the rollout of an affordable, ‘Make in India’ electric vehicle (EV) from Tesla?
Central to the prospect of a more accessible Tesla model, particularly the entry-level Model 3, is the establishment of local manufacturing capabilities for battery components and a robust EV supply ecosystem. Musk’s maiden visit to the country is expected to herald significant announcements in this regard.
Presently, Tesla’s pricing remains consistent across global markets, with the base variant of the Model 3 fetching over $40,000 (approximately Rs 33.5 lakh).
According to senior analyst Soumen Mandal of Counterpoint Research, local production by Tesla would eliminate import duties, paving the way for more competitively priced Tesla vehicles in India.
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Furthermore, cost reduction measures may entail offering Tesla cars with pared-down features compared to their global counterparts. Mandal suggests potential modifications such as excluding certain hardware required for Full Self-Driving (FSD) mode while integrating Advanced Driver Assistance System (ADAS) Level 2 functionalities.
Tesla’s anticipated local production capacity could reach up to 500,000 electric vehicles annually, with price points starting from Rs 20 lakh in India. Achieving affordability at this level may involve employing battery packs with lower capacities, less powerful electric motors, and streamlined in-vehicle electronics.
India’s recently revised EV policy, which slashes customs duty to 15 per cent (with certain conditions) from the previous 100 per cent on imported cars, further bolsters the feasibility of Tesla’s local manufacturing ambitions.
Setting up EV manufacturing facilities in India would necessitate a minimum investment of Rs 4,150 crore (approximately $500 million).
Industry experts project that Tesla stands to generate substantial revenue of at least $3.6 billion in India by the year 2030.
As anticipation mounts ahead of Musk’s visit, stakeholders eagerly await the potential transformation his presence could bring to India’s burgeoning electric vehicle landscape.