Monday, July 17, 2023

Tesla Is Considering A $25 Billion Bet On The Indian Electric Vehicle Market

Chris Bibey
Mon, July 17, 2023


Tesla Inc. is considering an investment proposal with the Indian government that would see the company open a factory with the capacity to manufacture roughly 500,000 electric vehicles each year, according to a recent report citing government sources.

Should this plan come to light, it would also provide Tesla with a home base for exporting vehicles to other countries in the region.

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Other Proposed Details

While details are still murky, it's been reported that the starting price for the vehicles in India will be $24,401. While that's substantially more than India's cheapest electric vehicle, it's competitively priced when compared to Tesla EVs in countries such as the United States.

“Tesla has come to us with an ambitious plan, and we are confident that the movement will be positive this time around, especially as it involves both local manufacturing and exports," said a source discussing the plan with the Times of India.

Last year, the anticipated entrance of Tesla into the Indian market faced hurdles when the national government declined to reduce import tariffs levied on the automaker's vehicles. Notably, India imposes an import tax of up to 100% on electric automobiles

India expressed its interest in Tesla establishing a local manufacturing base, while the automaker responded with a preference to initially export its vehicles into the country to gauge market demand.

With a modified strategy to penetrate the Indian market, Tesla engaged in negotiations with government representatives in May concerning potential incentives for vehicle and battery production.

The negotiations this time around are spearheaded by India's commerce and industry ministry, aiming to orchestrate a mutually beneficial agreement, ensuring a balanced competitive environment. The talks encompass both domestic manufacturing and exports.

During a recent interaction with Tesla CEO Elon Musk, Indian Prime Minister Narendra Modi encouraged the automotive manufacturer to make a substantial investment in the country.

If everything goes as planned, this will be a big win both for Tesla and the Indian auto market.

Green Energy Movement

This comes at a time when India is rapidly moving towards green energy solutions. As one of the largest energy producers in the world, the country is quickly becoming one of the largest renewable energy producers in the world as well. As the country, and most of the worlds super powers, look to embrace electric vehicle solutions like Tesla, there’s a race to develop more innovative solutions. For example, startups like Airthium are developing solutions to beat out Tesla’s lithium-ion solutions.

Fisker to sell limited edition electric SUVs in India by fourth quarter


Reuters
Mon, July 17, 2023 

 The 2022 Paris Auto Show

(Reuters) - U.S. startup Fisker said on Monday it would produce 100 limited edition electric sports utility vehicles (SUVs) for the Indian market and expects to begin deliveries in the fourth quarter this year.

The company had said in September it would begin selling its Ocean electric SUVs in India by July 2023, with local production beginning in a few years.


But it now expects to complete the final checks for the SUV, named Fisker Ocean Extreme Vigyan, for India by the end of September, with its pricing aligning with the European market.

Fisker Ocean Extreme is priced at 69,950 euros ($78,588.83), excluding taxes, in Germany. That would equate to around 6.45 million Indian rupees. A Fisker Ocean SUV starts at $37,499 in the United States.

Electric vehicles (EVs) make up just 1% of the 3 million cars sold each year in India, with the government wanting to increase this share to 30% by 2030. For this, the country has introduced several incentives, including tax breaks for consumers.

In India and across all regions outside China, the U.S. and Europe, EV sales are expected to represent 2%-3% of car sales in 2023, a relatively small yet growing share, according to data from International Energy Agency.

Fisker has a secondary office in Hyderabad, India, and has about 100 employees in the country, according to its LinkedIn page.

The California-based company has a contract manufacturing agreement with Magna International, which would produce the Ocean at its Austrian unit and ship it to India. Fisker also looks to produce its next EV, the smaller, five-seater PEAR in India with Foxconn.

($1 = 0.8901 euros)

(1 Indian rupee = 0.0108 euros)

(Reporting by Akshita Toshniwal in Bengaluru; Editing by Shilpi Majumdar)

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