According to a report, Indian government and Elon Musk’s eletric car company Tesla are well on their way to sign a deal. Reportedly, this deal will bring this American car company to India. As per a report by Bloomberg, the company might enter India in 2024.
As per the report, the Indian government is very close to signing a deal with Tesla Inc. This deal would allow the US company to it’s cars to the country. Not just that, this deal might also open doors for a factory set up of Tesla in India.
A source quoted in Bloomberg said, ‘The announcement regarding the deal can be made during the Vibrant Gujarat Global Summit in January 2024’. The American company is considering Indian states like Maharashtra, Tamil Nadu anf Gujarat to set up it’s electric vehicle (EV) factory.
According to the report, ‘Tesla is also expected to make an initial investment of USD 2 billion to set up shop in India, and would look to increase purchases of auto parts from the nation to as much as USD 15 billion’.
The source quoted in report have also shared that the plan has not been finalised and there could be changes in the future. Musk’s company is eyeing for states like Maharashtra and Tamil Nadu because of their well established ecosystems favourable for electric vehicles and exports. However, Gujarat is into consideration because of it’s rapid infrastructural growth.
Apart from these, the EV company is also planning to make some batteries locally so as to bring down the total costs. As of now, Tesla has factories in the US, China and Germany. But, the Modi government’s push for EVs in India aimed at curbing pollution may prove to be a major boost for Musk’s company.
