The Indian government is close to finalising an agreement with Tesla that would allow the US automaker to import its electric vehicles to the country from next year, while paving the way for a local factory in the next two years, reported Bloomberg News.
According to the report, Tesla is planning to launch Model Y Crossover, as its first model to be available in the country. The same model will be launched in Germany too.
The Model Y is a battery electric mid-size crossover SUV built by Tesla in 2020 and is based on the Model 3 sedan platform. The Tesla Model Y is expected to fill a less expensive segment than the mid-sized Tesla Model X and would offer optional third-row seats for a seven-passenger seating capacity.
For the setting up of the manufacturing plant, the US-based EV maker would have to commit to a minimum investment amount of USD 2 billion (about Rs 16,665 crore), said a source. Tesla had earlier planned to source USD 1.9 billion (approximately Rs 15,700 crore) worth of auto components during this year, almost doubling the amount it sourced last year, and is looking at increasing the purchase of Indian auto parts to USD 15 billion (about Rs 1.2 lakh crore).
Currently operating factories in the US, China, and Germany, Tesla's potential venture in India follows the Indian government's active push, led by Prime Minister Narendra Modi, for increased domestic manufacturing of EVs to expedite the shift towards cleaner transportation.
However, Elon Musk's Tesla is yet to make an official announcement on its India foray. The same is expected at the Vibrant Gujarat Global Summit, which is scheduled to take place from January 10-12, 2024.