Tesla scouting sites for US$3b car plant in India: FT
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The news: Tesla will scout locations in India for a proposed USD2-$3 billion ($3-$4.5 billion) electric car plant later this month, following New Delhi’s decision to lower tariffs on more expensive imported EVs for companies that commit to local manufacturing within three years.
The numbers: While EV makers are struggling with a global slowdown in demand for their vehicles, India’s small EV market continues to grow. EVs made up around 2% of total car sales in India during 2023, and the government is aiming for that figure to reach 30% by 2030.
The context: According to unnamed sources cited by the Financial Times, Tesla will send a US team by late April to assess sites for the plant, focusing specifically on Indian states with existing automotive hubs such as Maharashtra, Gujarat and Tamil Nadu.
Tesla had been pushing for the tariff cut from New Delhi as a pre-condition for investing in the country.
Earlier this year, Tesla shared its plans to develop a cheaper vehicle, the ‘Model 2,’ to go on sale in late 2025, however it did not specify where this model would be manufactured. According to the FT, Tesla told Indian officials that it is considering building a smaller car in the proposed plant, which would be priced at less than USD30,000.
On Tuesday, Tesla posted disappointed delivery figures for Q1, stating that it delivered 369,783 vehicles in the first three months of 2024, falling far short of analysts’ average estimate for 449,080 deliveries. The figures amount to Tesla’s biggest miss ever and caused shares in the EV maker to slide over 8%.
The sources: Financial Times, Reuters
