25 September , 2020 Fdiindia
Tesla Soon to Enter Indian Market
In India now soon, Elon Musk's Tesla cars will be riding. On September 10th, 2020, Tesla started its discussions with the government officials of Karnataka for the establishment of a research and development facility in Bengaluru.
The talks between Tesla and the government officials are just in the initial stages and at the end of this month, there is a possibility of getting the concrete details of the plan. In July, Elon Musk (CEO of Tesla) had said that Tesla will be making a debut in India very soon. If the talks take a fruitful turn then India will be the second country outside of the US where Tesla will be having a research center.
This move will also be fruitful for India for attracting the other foreign carmakers to enter into the Indian markets.
There were some concerns raised by Tesla on the FDI rules of India in which 30% sourcing of goods from India for single-brand companies is mandatory.
Later the Indian Government had made amendments in the FDI rules in 2019 and gave allowance for the sourcing of goods and services through the company's third-party vendors. This change in the FDI policy of India was helpful for companies such as Apple and Xiaomi.
For the research center of Tesla in India, Bengaluru is the best place as it also has other local and global automobile companies like Bosch, Mahindra Electric, Daimler, etc. There are also many other electric vehicle startups in Bengaluru like Aether, Ola Electric, Sun Mobility, and more.
Karnataka was the first state in India for the establishment of an electric vehicle policy for the generating of EV R&D and manufacturing investments that amount to INR 31,000 crores. Following the footsteps of Karnataka, 11 other states have established their policies such as Gujarat, Delhi, Maharashtra, Tamil Nadu, Telangana, and Andhra.
Elon Musk tweeted in July that indicated that the company is looking up to open another Gigafactory aka car and battery factory in Asia outside of China. The tweet further added, "But first we need to finish Giga Berlin for Europe and a second US Giga to serve the eastern half of North America."
Tesla has overtaken Toyota in the race of becoming the world's most valuable automobile company. The operations of Tesla are in Europe, Latin America, Japan, Singapore, China, and Australia.