Source: Finance Association
① At a time when electric vehicle manufacturers around the world are “generally struggling,” news broke that Tesla will build a new factory; ② According to India's new regulations, if they want to enjoy preferential import tariffs, car companies need to promise to build cars in India within three years; ③ People familiar with the matter revealed that Tesla's Indian factory will produce the next generation of entry-level models that are about to be launched and exported to many parts of the world.
While Musk laments that “the first quarter of this year was very difficult for all car manufacturers,” Tesla's pace of expansion and the rumored “Model 2” have the latest news.
According to people familiar with Tesla's “India” plan, the tram leader will send a team to India in late April to inspect potential factory sites. The proposed investment amount for Tesla's India plant is about 2 to 3 billion US dollars. This is a follow-up to India's policy of lowering tariffs on imported high-priced electric vehicles last month — to enjoy this policy, car manufacturers must commit to building cars in India within 3 years.
According to India's new deal, eligible car manufacturers can enjoy a 15% preferential import tax rate for imported electric vehicles that cost more than $35,000. However, this policy also limits the number of imported electric vehicles.
The US team will visit many places
According to news on Wednesday, Tesla's headquarters will send India to inspect the factory site before the end of April, focusing on Maharashtra, Gujarat, and Tamil Nadu, which already have an automobile industry.
According to people familiar with the matter, Tesla may also be looking for a site to build a factory near New Delhi, but the company will still focus on the three places mentioned earlier — because all three regions have ports, making it easy to export cars.
For the Modi government, which aims to develop the local manufacturing industry, getting Tesla's official announcement to build a factory will be an important achievement. Modi also met Musk on a special occasion during his visit to the US in June last year. After the meeting, Tesla CEO also expressed his hope to visit India in 2024.
Musk also said in front of reporters at the time that Modi was pushing for Tesla to make a major investment in India. This is also “something we plan to do”; we only need to find the right time.
Will the rumored “Model 2” be made in India?
According to reports, Tesla has told Indian officials that they are considering manufacturing a smaller car than the existing model at the proposed new plant, and the price will also be less than 30,000 US dollars. Subsequently, the model produced by the Indian factory was not only sold to the local market, but also exported to Southeast Asia, the Gulf region, Africa, and Europe.
As for Tesla's next entry-level model, many market participants are used to calling it “Model 2.” The company currently expects the new car to be launched later next year, and it is not yet time to confirm the production site.
It is worth mentioning that Tesla has previously officially announced that it will build a factory in Mexico that is scheduled to be put into operation in 2026. According to sources, Tesla expects the production capacity to reach 500,000 vehicles per year after the Indian plant is completed. At the same time, the company may follow the “gigafactory” model of California, Shanghai, and Berlin, consider building a battery factory in India, and arrange for suppliers to build an industrial chain nearby.
Therefore, in addition to Tesla's own investment of 2 to 3 billion US dollars, the “Tesla India Gigafactory” will also drive a number of suppliers into the region, and it is expected to drive billions of dollars in investment.
In addition to Tesla and local company Tata Motors, Vietnamese car company VinFast also has plans to build a plant in Tamil Nadu. India's largest steel manufacturer JSW also just announced the establishment of a joint venture with SAIC Motor Group last month to jointly produce MG brand electric vehicles in India.
edit/lambor