The Indian government is working to expedite approvals for Tesla’s potential entry into the country, with a goal of providing all the necessary clearances by January 2024.
A recent meeting conducted by the Prime Minister’s Office reviewed the upcoming phase of electric vehicle (EV) manufacturing in India, which includes Tesla’s investment proposal, an ET report said.
The world’s leading electric car manufacturer has been engaged in discussions with the Indian government around its broader expansion into the Indian market, covering multiple aspects of EV manufacturing.
Tesla has been attempting to enter the Indian electric car market for a while. However, India’s focus on local EV manufacturing has posed hurdles for Tesla. Earlier this year, Musk met with Prime Minister Narendra Modi and expressed optimism about Tesla’s prospects in India.
From renting office space in Pune to meeting the top government officials and ministers, Tesla is gradually taking the necessary steps to launch the business in the country soon.
In August, Tesla officials also met union minister Piyush Goyal to discuss the acceleration of its plans to establish a manufacturing plant in the country.
The company is also planning to source EV components worth $1.7 Bn to $1.9 Bn this year from local vendors. The EV giant also plans to set up a battery storage facility in India.
In addition to Tesla, Audi and Mercedes-Benz are also in the queue to grab the opportunities in the Indian EV ecosystem.
The increasing demand for EVs in India has attracted both global and domestic tech companies, along with emerging startups. Acer, the Taiwanese tech giant, recently entered the Indian EV market by licensing its brand to eBikeGo, a mobility startup. Additionally, VinFast unveiled plans to invest $150 Mn – $200 Mn in India to establish a CKD assembly unit.
Currently, international players like MG Motor, Renault SA, Nissan, Volkswagen, and BYD are among the leading players in the electric car market in the country.
Following a reported 300% increase in EV sales in 2022, as stated by Road Transport and Highway Minister Nitin Gadkari, companies and startups have been entering the space. Gadkari also projected that the Indian EV market could achieve a valuation of $266 Bn by 2030. With 3 Mn registered EVs, the country witnessed a significant surge in EV sales, growing by 131% from 25,100 units to 58,076 units.
India presently has approximately 3 Mn registered EVs (according to Vahan), and it’s expected that sales will reach 10 Mn EVs by 2030, creating jobs for 50 Mn people.
India hosts more than 700 EV startups, illustrating the industry’s vibrant landscape. Since 2015, Indian EV startups have raised close to $2.5 Bn in funding.
Concurrently, established ICE manufacturers have also accelerated their transition to the electric vehicle segment.
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