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Tesla to Set Up a Manufacturing Unit in India

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Tesla’s announcement of arriving in the Indian market was met by a lot of enthusiasm and well, memes. But it hinted that the Indian public is ready to welcome a new kind of technology and are excited to try it. The news about Tesla to set up a manufacturing unit in India, for some, symbolised our nation’s development, while others tried to justify that Teslas won’t work in the country.

Highlights

  • Tesla finally venturing into the Indian market
  • The unit is going to be set up in Karnataka, as per reports
  • Manufacturing in India means reduced costs
Tesla

Tesla has put another foot in the direction of expanding in India. 

According to Reuters, Elon Musk’s Tesla Inc. is setting up a manufacturing unit in Karnataka, as per a government document. The document was based on Karnataka’s budget, as per Reuters.

The billionaire has targeted India’s southern part, which also has manufacturing units of other US companies like Apple. 

Karnataka’s Chief Minister B.S. Yediyurappa had also tweeted that Tesla would start its processes in India with an R&D unit in Bengaluru. The tweet was later deleted, but is suspected to be about the same unit.

The electric carmaker also incorporated Tesla Motors India and Energy Private Limited with its registered office in Bengaluru, making the news even more solid.

Elon Musk confirmed the confirmation of Tesla to set up a manufacturing unit in India in an exchange on Twitter last December. Back then, he mentioned that the electric car manufacturer would step into India in 2021.

Along with boosting employment in the country, Tesla will also make people more inclined towards electric cars.

Tesla's manufacturing unit in India will also result in a significant price decline, compared to if the cars would have been imported. 

We have seen a considerable amount of electric cars in India, but none of them have really made a mark on the public. Tata’s Nexon EV is only one in the fully electric cars fleet to receive some kind of reciprocation in the market. 

However, things are different with Tesla. They will arrive in the country with a good reputation and an astonishing line of products.

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Tesla

But is India ready for Teslas?

Well, not so much. While the general public is, the roads aren’t.

One of the highlight features of Tesla cars is the Autopilot function. But for that, you need proper roads with lane markings. Also, our roads are too congested for the Autopilot to function correctly. 

Alongside that, the absence of good charging infrastructure will also trouble Tesla buyers.

However, we must not forget that every good change takes time. India has, for long neglected the environment’s plight. The government has tried to rejuvenate the electric car industry time and time again to reduce oil dependency and other fossil fuels.

Still, Tesla cars are not going to be feasible for the common public as they will cost a premium compared to the Audis and the BMWs’ likes. With the prices of petrol and diesel shooting up, people are more likely to shift to electric cars for their affordable running cost. 

The government is also planning to offer $4.6 billion in incentives to companies setting up high-level battery production facilities, in order to bring in more manufacturers. This will, in turn, reduce the cost of at least a few components. 

Owning a Tesla in India will by no means be an affordable task. Except for the running cost, every other aspect is going to cost a considerate amount of money. 

But, this is a start in the right direction if we are planning to be anywhere near a sustainable future

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