Ali Hasan
Tesla has made its entry in India but all is not well for them. Tesla might be in the country but they are still miles away from selling their 1st car as they don’t have any factory yet. With no factory in India, they are bound to import the cars and this will seriously affect the prices.
Hence, the dream of an affordable Tesla might be well, a dream. If the cars are manufactured aboard and imported to India, then they might be very expensive as the import duty itself is jaw dropping. Will you buy a Tesla if it’s priced between Rs 45-55 lakhs? Do tell us in the comments. Your comments are extremely valuable for us and we will be replying to the ones we find interesting.
But to counter this problem, they will have to manufacture the Tesla cars in India itself. If the cars are manufactured in Tesla itself, then the cost of production, logistics and import duty will all be saved and will make the cars pretty affordable an economical.
Tesla might setup a factory in Gujarat
The 1st launch expected from the company is its entry-level offering, the Model 3 sedan, which will be sold in India through the CBU (Completely Built Unit) route, thus demanding a higher price tag (starting at approximately Rs 60 lakh).
The most affordable and best-selling product of the brand, Model 3 comes in 3 variants: standard range plus, long range and performance. But the brand hasn’t confirmed if it will bring its Autopilot autonomous driving assist to India, one of the biggest highlights of the brand.
Although India’s road infrastructure has improved in recent years, traffic discipline like lane driving is still pretty messy. Auto experts say that many of Tesla’s features like autonomous driving or automatic lane changing won’t work in India with ease.
There are many factors responsible for that such as stray animals including cattle and potholes spread across the road. Most of Tesla’s high technology features will be redundant and user won’t get the bang for the bucks despite paying premium prices.
Now we have reports that Tesla might setup its 1st factory in Gujarat. Tesla has recently confirmed its entry in India by registering a subsidiary under the name – “Tesla India Motors and Energy Private Ltd” in Bengaluru.
Now, it is reported that the state of Gujarat has made a strong pitch to invite the EV maker to set up base in the state, according to ETAuto. The EV giant is reportedly in talks with 5 Indian states including Gujarat to set-up its operations in the country. The Karnataka government has reportedly offered space to Tesla in Tumkur, on the outskirts of Bengaluru.
Gujarat has emerged as a preferred destination for global automobile manufacturers, particularly for electric cars. Banking on the same, the state is reportedly making a strong pitch to Tesla to set-up a base in Gujarat.
Manoj Das, additional chief secretary (ACS), Chief Minister’s Office (CMO) and in charge ACS, industry and mines department, said to ETAuto that the Gujarat state government is in discussions with Tesla regarding the same. Moreover, the government has assured the EV maker will receive all possible assistance and incentives for setting up base in the state.
The official said to ETAuto, “The world’s top most automobile companies have set up manufacturing plants in the state, which has become an automobile hub with key MSME players supporting large companies. Major electric car manufacturers and vehicle battery manufacturers are setting up facilities in Gujarat. We are hopeful that like other global automakers, Tesla will prefer Gujarat.”
He further said, “Companies will be able to take advantage. Gujarat also has strategic advantages like ports and proximity to all major markets of India. In the past two months, we have had significant communication with the company and explained our new industrial policy and other advantages of being in Gujarat.”
According to reports, the company is expected to commence operations by June this year and the first product to be made available will be the affordable Model 3. The sedan is expected to go on sale by the end of the first quarter of FY2021-22. The pre-bookings for the electric car are expected to begin soon. However, Tesla hasn’t revealed India arrival dates and prices yet.
According to a 2020 study by lubricants major Castrol, most consumers in India would consider buying an electric vehicle by 2022, but most of them also believe that it won’t be until 2025 that the majority of new cars purchased are electric. The study found that, on an average, for consumers in India, a price point of Rs 23 lakhs (or $31,000), a charge time of 35 minutes and a range of 401 km from a single charge represents the ‘tipping points’ to achieve mainstream EV adoption.
Also, when Tesla comes to India, the brand will have to pay special emphasis on the next-generation electric vehicle batteries, turning to lithium iron, not lithium ion. The next generations of lithium ion batteries have fundamental chemical engineering science powering EVs.
The lithium-iron phosphate does not require nickel or cobalt, and lab research shows that this will cut costs; enhance much longer-range and durable battery cells. The new technology can allow cars to go 400 miles or more between charges and last as long as 1 million miles.
