In a significant development, Tesla India has made its move by securing an office space in Pune, just a week after top-level officials from the company met with Union Minister for Commerce and Industry, Piyush Goyal.
A five-year lease agreement has been inked, securing a prime spot at Panchshil Business Park in Pune’s Viman Nagar.
The meeting between Tesla and the commerce minister marked a crucial milestone, as it was the highest-level discussion since Elon Musk’s meeting with India’s Prime Minister Narendra Modi in June. During that meeting, Musk had expressed his intent to make significant investments in India, and now Tesla seems to be moving forward with concrete steps.
Sources indicate that during the discussions, EV Tesla representatives laid out a proposal to set up an Indian plant that could offer vehicles at a jaw-dropping 25 percent less than their current lowest-priced Model 3 sedan, which sells for over $32,200 in China.
As per another source, the new Tesla vehicle is expected to carry a price tag of $24,000, making it a game-changer in the Indian EV market.
Currently, electric vehicles make up less than 2 percent of total vehicle sales in India, despite the country being the world’s third-largest auto market. However, Tesla’s interest in establishing a manufacturing base in India could revolutionize the EV landscape in the country.
Tesla’s Meeting With Minister Piyush Goyal: What To Expect?
The meeting with Minister Piyush Goyal is expected to focus on setting up a robust EV supply chain and exploring land allotment options for the factory. Tesla has been actively reducing prices of its existing models since the beginning of the year, and Musk has consistently emphasized the importance of significantly lowering EV costs for the company’s long-term success.
Tesla’s next-generation vehicle platform is projected to cut production costs by a staggering 50 percent. The company envisions this platform giving rise to multiple models, including an automated “robotaxi.” However, the specifics of these future models and their pricing remain undisclosed for now.
Tesla EV Production Plants
While Tesla currently produces EVs in California and Texas, it has already established successful plants in Berlin and Shanghai outside of North America. The Shanghai plant has emerged as Tesla’s largest, contributing almost 40 percent of the company’s global capacity.
With the Pune office space secured and discussions with Indian officials gaining momentum, Tesla’s entry into India’s EV market seems to be right on track. The Indian government’s commitment to not provide import tax concessions has further incentivized the company to explore local manufacturing possibilities.
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