On Wednesday it was reported that Tesla is set to deploy a team to explore potential locations in the country for a proposed electric car plant valued at $2 billion to $3 billion. 
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On Wednesday it was reported that Tesla is set to deploy a team to explore potential locations in the country for a proposed electric car plant valued at $2 billion to $3 billion. Rajesh Kumar Singh, Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), on Thursday said Tesla Inc. has to decide on its investment plans for India after the Narendra Modi-led government cut import duty on electric vehicles.
The Centre has floated a new scheme to promote electric vehicles in India. Implemented by the Ministry of Heavy Industries, the new scheme has come into effect from April 1 after the end of the FAME scheme on March 31, 2024.
The new Rs 500 crore scheme, Electric Mobility Promotion Scheme 2024 (EMPS 2024), will continue till the end of July. The scheme will offer support of up to Rs 10,000 per two-wheeler for about 3.33 lakh two-wheelers.
The EMPS 2024 will target supporting 3,72,215 EVs, specifically prioritising vehicles equipped with advanced batteries for incentives.
"The industry department last month released a comprehensive policy for boosting EV manufacturing in the world’s most-populous nation. Following that move, it’s up to Elon Musk’s carmaker to “make the announcements of their manufacturing plans,” Singh told Bloomberg in an interview.
“We will help them out in terms of giving them the contacts at state level...There have been contacts made at that level with state governments and the central government. VinFast has already announced and we expect a few others,” he added.
On Wednesday it was reported that Tesla is set to deploy a team to explore potential locations in the country for a proposed electric car plant valued at $2 billion to $3 billion. Additionally, Tesla aims to increase its procurement of auto parts from India to approximately $15 billion.
Elon Musk previously had insisted on import tax cuts to invest in a major auto market. The government now mandates a $500 million investment and local EV production within three years for tax benefits. This policy aims to boost domestic manufacturing and adoption of electric vehicles.
Singh emphasized on Thursday that this policy is expected to stimulate the growth of electric vehicles in the country.
“We expect it to lead to a penetration of four-wheeler electric vehicles to at least 10% by 2030,” he said. “My view is that if we have these manufacturing units up and running, along with the battery infrastructure that is now going up, it should be closer to 15% by 2030, after which it will just snowball.”
Earlier this week, it was reported that Tesla registered a drop in quarterly sales. Tesla on Tuesday said it delivered 386,810 electric vehicles over the first three months of 2024, falling wildly short of Wall Street’s expectations. Wall Street had estimated deliveries of 457,000 EVs for the first quarter, according to a consensus tracked by FactSet.
Tesla's vehicle production decreased in the recent quarter compared to the first three months of 2023. This decline was mainly caused by factory upgrades and global disruptions. In China, Tesla is adjusting Model Y and Model 3 production levels to compete with local rivals like BYD and newcomers like Xiaomi. Production has also been slowed because of an update to the Model 3 production line at Tesla’s flagship factory in Fremont, California.
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