Tesla is on track to enter the Indian market with its electric vehicles (EVs), as the first shipment of cars is expected to arrive soon. The US-based EV giant plans to ship thousands of cars to a port near Mumbai and establish its manufacturing unit in the country.
After meeting with Indian Prime Minister Narendra Modi at the White House, Tesla officials announced plans to start hiring in India. The company has contacted several state governments, including Gujarat, Tamil Nadu, and Maharashtra, for potential factory locations. Tesla aims to build a 500,000-vehicle capacity plant and invest between $2 billion and $3 billion.
The Indian government had previously expressed concerns about shipping EVs from China due to high import taxes. However, the recent customs duty cut from 110% to 70% on cars over $40,000 could ease Tesla’s entry into the market. Tesla plans to sell its cars in cities like New Delhi, Mumbai, and Bengaluru by the third quarter of the year.
The company has proposed a budget EV for India priced between ₹20-25 lakh. Tesla will source its cars from its German factory instead of China, citing government concerns about shipping from the Asian nation. This decision may be driven by efforts to avoid high import taxes in India.
Analysts have maintained a neutral stance on Tesla’s stock, with 13 Buy, 12 Hold, and 10 Sell recommendations. The average price target for Tesla shares is $351.38, almost similar to the current level.
Source: https://www.tipranks.com/news/tesla-evs-set-to-hit-indian-roads-as-first-shipment-nears