Tesla to scout sites for its US$3 billion EV factory in India

Tesla plans to build a new small EV, dubbed ‘Model 2’ at its upcoming manufacturing plant in India.

According to media reports, a team of Tesla executives will be travelling to India by late April to scout for locations to set up a proposed US$3 billion EV factory.

Reports suggest that Tesla will be focusing on states with existing automotive hubs, including Maharashtra, Gujarat and Tamil Nadu. The EV maker might also scout for locations around the national capital. However, sites in the aforementioned states would be preferred due to their proximity to ports, making it easier to export locally manufactured EVs.

Tesla plans to build a new small EV, dubbed ‘Model 2’ at its upcoming manufacturing plant in India. It is expected to be priced under $30,000 and will be exported to markets in Southeast Asia, the Gulf, Africa and Eastern Europe.

Tesla’s India unit is expected to have a maximum production capacity of 5,00,000 units per annum. The carmaker might also consider setting up its own battery plant at a later stage.

The government of India recently approved a new EV policy aimed at attracting fresh investments in the electric vehicle space. Companies will have to invest a minimum of Rs 4,150 crore in the country and will have 3 years to set up a local manufacturing unit for EVs with at least 25% localization.

Source: Financial Times