Elon Musk to set up Tesla’s plant in this Indian state?

After Telangana, Maharashtra has now invited Tesla CEO Elon Musk to set up a factory in the state. Maharashtra Water Resources Minister Jayant Patil wrote on Twitter on Sunday that the state could be the site of Tesla’s factory to manufacture electric cars in India. The West Bengal government has also invited Tesla to set up its factory in the state.

West Bengal Minister Mohammad Ghulam Rabbani on Saturday responded to Elon Musk’s tweet in which the Tesla CEO wrote that his company still faces several challenges with the Indian government in resuming operations in the country.

Tesla factory to be set up in Maharashtra?

Replying to the same tweet, Jayant Patil said that Maharashtra is one of the most progressive states of India. He wrote on Twitter, “We will provide you all the necessary assistance from Maharashtra to open a factory in India. We invite you to set up your factory in Maharashtra” The reply to Elon Musk’s tweet came after the Telangana government first showed interest in hosting Tesla’s EV manufacturing plant in India. Telangana Industries and Commerce Minister KT Rama Rao took to Twitter. But his government would be happy to partner with Tesla to address the challenges of setting up the factory. “Our state is a champion in sustainability initiatives and a top business destination in India,” Rao wrote.

Elon Musk demands

Despite showing interest in starting manufacturing and business operations in India for a long time, Elon Musk had raised concerns in August last year, saying that the import duty in India is the highest of any major country in the world, which is the largest number of OEMs. influencing the plan.

At present, customs duty is levied between 60-100 percent on imported cars in India. India levies 100% customs duty on fully imported cars with a CIF (Cost, Insurance and Freight) value above $40,000, while 60 percent on cars whose value is less than the amount.

First, make in India then talk about discount

Tesla wants to sell imported cars here instead of manufacturing cars in India. Tesla has said in many forums that the Indian government should reduce the import duty on electric cars. However, the Ministry of Heavy Industry has told Tesla vehemently that Tesla should come to India and make a car first, then an exemption will be considered. Sources in the government say that by exempting Tesla, it does not want to send a wrong message to the entire industry as many domestic companies have invested heavily here.

Indian market not easy for Tesla

Auto market experts say that it is not easy to compete in the Indian electric vehicle market. Here along with domestic companies like Tata and Mahindra, companies like Maruti, Hyundai, MG, Mercedes, Audi and JLR are already present in the market with their products. In such a situation, the Indian market is very challenging for Tesla based on one or two models.

Fast-growing Indian market

The attraction of companies in the Indian electric vehicle market is its fast pace. According to a report by Mordor Intelligence, the Indian electric vehicle market is expected to grow to $47 billion by 2026. The report said that despite the Corona crisis, due to the policies of the Government of India, the electric vehicle market here is growing faster than expected.