Tesla's Electrifying Journey into India's Land of Opportunities

Photo Source - Google

Facing initial opposition from domestic automakers regarding reduced import duties, Tesla has been trying to enter the Indian market for the last 2 years.

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Tesla was advised by the Indian government to assemble cars in India using the completely knocked down (CKD) method, which incurs a lower duty of 10% compared to 70% for imported cars exceeding $40,000.

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Work has been commenced by Ola Electric, an electric vehicle maker, on its first cell factory in India, planning for it to be the country’s largest and one of the world’s largest cell factories.

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There is an alignment between the establishment of Ola Electric’s gigafactory and Tesla’s negotiations with the Indian government to set up its own manufacturing plant in the country.

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In order to reduce dependence on China, Taiwan, Japan, and Korea for battery cells, Ola Electric plans to launch its own lithium-ion cell by the end of 2023.

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Driving the need for multiple gigafactories worldwide, interest in Tesla in India stems from its ambitious plan to produce 20 million electric cars per year by 2030.

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Significant changes in the landscape of luxury cars and EVs are foreseen by industry analysts, as they present a substantial opportunity for Tesla despite the current smaller luxury car market and lower EV sales in India.

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The primary focus of the Ola giga factory, located in Krishnagiri, Tamil Nadu, will be on manufacturing lithium-ion cells for bikes before expanding to the broader market.

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The attention of global players like Tesla and Ola Electric has been attracted by India’s growing electric vehicle market and the government’s push for clean energy initiatives.

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