Economy News

Telsa on venturing into making cars in India for the first time

After founder Elon Musk set up production in the U.S. and China, Tesla Inc. is set to close an agreement to make electric vehicles in India for the first time.

For its first plant, it has reportedly chosen Karnataka, a southern state whose capital is Bangalore.

However, the automaker is currently planning for car assembly in the suburbs of Bangalore and has been negotiating with local officials for the last six months.

The aim of Telsa is focused on Bangalore due to it’s prolific growth as a hub for electric vehicles and aerospace manufacturing talent.

Moreover, it’s much awaited foray into India is projected to be quite challenging despite the ongoing hype.

As of now, the country hasn’t yet rolled out the welcome mat for EVs like neighbour China, where Tesla set up its first factory outside of the U.S.

Further, the price tag of Telsa is one of the prime reasons for Elon Musk to not be able to sell an EV to most of the population in emerging economies.

Telsa is reportedly all set to target a fast-growing group of affluent individuals on consideringthe size of the population and the potential for economic growth.

Inspite of India’s potential for broader economic growth, charging infrastructure will continue to remain an impediment to large-scale EV adoption.

It is estimated that 60% of the world’s public slow- and fast-charging spots are in China as claimed by International Energy Agency.

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