American electric carmaker Tesla has been keen on making headway into the Indian market and it now seems the automaker is in touch with five state governments to set-up operations in the country. According to a recent report, the company is exploring the possibility of setting up headquarters, manufacturing as well as R&D centres in India. The report comes on the heels of Tesla co-founder, Elon Musk's confirmation that the brand will arrive in the country in 2021. More recently, MoRTH minister Nitin Gadkari also confirmed Tesla's India entry this year.
According to the report, Tesla is consulting Centre and State governments and is carrying out a location search for setting up operations in India. The Model 3 maker has also hired a global consulting firm in the same regard. It's not exactly a secret that several state governments have been wooing the American carmaker to set-up operations in their respective territory. This includes Maharashtra, Gujarat, Andhra Pradesh, Karnataka, and Tamil Nadu. All these states already have a thriving presence in the form of the auto sector that includes major OEMs as well as component suppliers and vendor parks.
The report also suggests that Tesla is considering local partnerships for sourcing components. Allegedly, the Karnataka government has offered Tumkur, near Bengaluru as one of the locations for Tesla to set-up operations.
Tesla had originally planned its India entry back in 2016 and even accepted orders from Indian customers. However, the brand never went ahead with its operations post the announcement with the changing import policies and dismal infrastructure for electric vehicles. Nevertheless, the past couple of years have seen an influx of privately imported Tesla vehicles in the country, while the infrastructure is on the rise as well, which may have prompted the company to look at the potential the market has to offer.
As per a previous report, Tesla will begin operations in India with the Model 3 sedan. The Mercedes-Benz C-Class rival will be the brand's most affordable offering and is likely to be priced between ₹ 55-60 lakh. The model is likely to be brought in as a Completely Built Unit (CBU) promising a top speed of 250 kmph and a range of about 500 km on a single charge.
Source: CNBC-TV 18