Tesla gearing up to manufacture half million EVs yearly in India

Tesla also aims to use India as an export hub to ship cars to Indo-Pacific countries, the report added, noting that the starting price for the EV will be $24,400, more than double India’s cheapest EV, the MG Comet, and $6,000 more than the Tata Nexon EV, the top-selling EV in India.

A decision by the Indian government last year to refuse lower import taxes, which could be as much as 100 percent for EVs, stalled the entry of Tesla, headed by billionaire Elon Musk, into the country.

India encouraged Tesla to manufacture locally, but the company said it wanted to export its cars first to the country to test local demand.

Reuters reported that as part of the company’s renewed efforts to change the stance of the Indian government, in May Tesla held discussions with Indian officials about incentives being offered for its cars, and battery production.

Local media reported that the Indian commerce and industry ministry is currently leading discussions and hopes to draft a “good deal,” while maintaining a level-playing field with all automakers.

In a meeting held last month, Prime Minister Narendra Modi encouraged Musk to make a “significant investment” in India.