Ali Hasan
After a very bad year, we finally have some good news for you guys. Tesla is all set to enter India. Tesla is in talks with 5 states to start their operations. The states are as follows:-
- Maharashtra
- Gujarat
- Andhra Pradesh
- Karnataka
- Tamil Nadu
Days after Tesla CEO Elon Musk confirmed that they are looking to begin operations in India; the company is looking at setting up manufacturing, research and development (R&D) centers in the country. According to reports, Tesla is also in the process of conducting a location search for setting up their operations and has hired a global consulting firm for the same.
According to CNBC-TV18, the Karnataka Government has proposed multiple location options, Tumkur being one, to Tesla for setting up their manufacturing. Tesla has also incorporated its Indian subsidiary, Tesla India Motors and Energy Private Ltd in Bengaluru on January 8.
It has also named 3 directors as a part of their team who are as follows:-
- Vaibhav Taneja – Chief Accounting Officer
- Venkatrangam Sreeram – Bengaluru based Entrepreneur
- David Jon Feinstein – Global Senior Director
Karnataka Chief Minister B.S. Yediyurappa welcomed Tesla in a tweet late Tuesday, before deleting the post a few hours later. “Karnataka will lead India’s journey towards Green Mobility. Electric Vehicle Manufacturer Tesla will soon start its operations in India with an R&D unit in Bengaluru. I welcome @elonmusk to India & Karnataka and wish him all the very best,” the since deleted tweet had read.
Tesla, an electric vehicle maker that is led by American billionaire Elon Musk, registered as a subsidiary company in Bengaluru Tuesday and the tweet was withdrawn after the company asked the chief minister’s office to not make any official announcements till the entire deal was finalised. “There will be a fresh announcement in some time. Until then, we have decided to withdraw the tweet,” an official from the CM’s office said.
With the entry of Tesla, the state hopes to generate investments upwards of Rs 35,000 crores through R&D and manufacturing. In the February 2020 budget, Sitharaman had set a target of 2,600 new charging stations across India but the progress is likely to have been set back by the COVID-19 lockdown. As of the latest data, India had 650 places where people could charge the EVs.
Aside from these, relief of income tax or goods and services tax (GST) can further improve the demand, not just for EVs, but for cars as a whole. The big question is will India sweeten its policy so much that the likes of Musk may want to ‘make in India’.
While the Narendra Modi government wants foreign investors to put their money in India, his recent policies have also emphasised on strengthening domestic companies. The Atmanirbhar (self reliant) programme is a case in point. This dilemma is visible in the case of EVs too. Last year’s budget increased the basic customs duty on electric vehicles by 5% to 15%.
Let’s hope for the best and I would like to ask a question to you. Would you buy a Tesla if possible? Do tell us in the comments. Your comments are extremely valuable to us.
