Prime Minister Narendra Modi with Elon Musk during the former's US visit.
Credit: Twitter/@narendramodi
EV major Tesla is reportedly in "advanced" talks to enter the Indian market and could be interested in investing as much as $30 billion over the next five years. The development comes as the Centre inches closer to finalising a new policy for Electric Vehicle (EVs).
“If it works out, this will be the biggest foreign direct investment commitment in India. Tesla will invest $3 billion in the plant and other partners in its manufacturing ecosystem will invest another $10 billion. In parallel, there will be another $5 billion investment in batteries that will grow to $15 billion,” Hindustan Times reported, quoting sources close to the company and those involved in the discussions regarding this project.
“We are looking at a total of $30 billion,” said the person.
The new EV policy, which is still being worked upon, will also be a key factor in drawing Tesla to India. As per the report, if there is a policy of a rebate in the present structure of import duty for foreign-made EVs, Tesla could move ahead with its plans.
The company will first look to put some of its standard brands in the Indian luxury car market. At the same time, Tesla would start working on its charging ecosystem in the country. The report also says that the EV major may invest in a factory, "with a high degree of local made-in-India content". This factory which is expected to be ready in three years may focus majorly on exports. It is also expected to serve the Indian market to a limited extent.
People privy to the discussions also told the publication that Tesla CEO Elon Musk is an "admirer" of India and what Prime Minister Narendra Modi has done for the country.
Musk met Modi in June last year in New York. After the meeting, Musk had told media that Modi was pushing the car maker to make a "significant investment" in the country. He also said then that an announcement on this development could come in the future.
Indian authorities have rejected that there would be any company-specific incentives, but have maintained that they remain committed to promoting EV adoption in the country.