The whispers about Tesla’s new venture are getting louder. The trailblazing EV manufacturer is reportedly crafting an affordable vehicle, designed for the Indian market and beyond. Set to retail around Rs 20 lakh ($24,000), this represents a significant price reduction, potentially driving the brand into the hands of countless new customers.
Tesla’s representative is expected to meet with India’s commerce minister, Piyush Goyal, later this month. The meeting signifies Tesla’s intent to build an Indian factory for producing this new budget-friendly electric car.
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Tesla’s aspiration for an Indian base implies a noticeable change in the company’s strategy. Despite previous attempts to decrease import taxes on electric vehicles (EVs), the company faced obstacles, primarily from government officials insisting on local production.
This new EV, designed for the Indian market, could disrupt the market dynamics substantially. The proposed price tag of Rs 20 lakh ($24,000) undercuts Tesla’s current most affordable model, the Model 3 sedan, by around 25%.
This month’s meeting represents the most significant engagement between Tesla and the Indian government since June. At that time, Tesla CEO Elon Musk shared his plans for significant investment in India with Prime Minister Narendra Modi.
India’s electric vehicle market is at an early stage, accounting for under 2% of total vehicle sales. However, Tesla’s entry with an affordable offering could spark a spike in demand for EVs. There’s a shortage of EV options in India below the 20 lakh price range, which Tesla aims to fill.
(Source: Business Today)