Synopsis
As Tesla prepares for its Indian debut, the government is expected to revise its EV policy to promote local manufacturing. The updated terms may include turnover requirements and import duty relief, aiming to attract Tesla and other automakers while paving the way for significant market penetration by 2030.Key Takeaways
- Tesla aims to enter India this year.
- Government likely to adjust EV policy to attract Tesla.
- New policy may require a turnover of Rs 2,500 crore.
- Initial imports from Berlin Gigafactory planned.
- Positive market response anticipated from automobile majors.
New Delhi, Feb 21 (NationPress) As Tesla gears up for its entry into India this year, the government is anticipated to adjust the parameters of a new policy aimed at fostering the production of electric vehicles (EVs) domestically.
To entice major players like Tesla, the revised EV policy may require automobile manufacturers to demonstrate a turnover of Rs 2,500 crore by the end of their second year, according to informed sources. The Central government might also provide additional import duty alleviations.
The official process for accepting applications is expected to commence once the revised EV policy is announced in mid-March, with approvals likely granted by August, allowing imports to begin shortly thereafter, as per trustworthy sources.
While Tesla, under the leadership of Elon Musk, is not planning to manufacture vehicles in India initially, it will rely on imports from its Berlin Gigafactory in Europe and gradually increase local sourcing.
As anticipation builds for Tesla's debut in India, the government is optimistic about receiving positive responses from various major automobile firms regarding the new EV policy.
The previous EV policy was disclosed in March of last year, where the government reduced customs duties to 15 percent under specific conditions.
This policy required a minimum investment of Rs 4,150 crore to establish EV manufacturing plants, production to commence within three years, and achieve a 25 percent domestic value addition (DVA) by the end of three years, rising to 50 percent DVA within five years at the maximum.
The new EV policy opened doors for Musk and other automakers aiming to penetrate the Indian EV market.
Experts predict that the EV sector in India could attain over 40 percent penetration and generate revenues exceeding $100 billion by 2030.
Meanwhile, the Musk-led company plans to adopt a "top-down approach"—initially introducing higher-end models before launching more affordable options.
The electric vehicle manufacturer is reportedly set to import its fully-assembled Model Y from its Berlin Gigafactory, as this electric SUV is produced in a right-hand drive format at the European facility.
Tesla, which operates an office in Pune, is actively scouting potential locations in the Bandra-Kurla Complex (BKC) in Mumbai and Aerocity in Delhi for its inaugural showrooms in India.
The firm has posted advertisements for over 13 new positions, primarily targeting the markets in Mumbai and Delhi. Available roles include business operation analyst, service technician, and various advisory roles, such as customer engagement manager and order operations specialist, according to its LinkedIn postings.
