Electric car maker Tesla is closing in on a deal worth around $2 billion to build its new electric car factory in India and officially enter the country’s market. India is one of the world’s most populous countries and by far the largest market in which Tesla does not yet have an official presence.
The manufacturer’s representatives have been negotiating with the Indian government for a long time, but so far they have always ended without results. The latest news shows that the two sides, after regular talks over the past few months, are still approaching a compromise that would open Tesla’s way to India. One of the demands of the Indian government for a long time was to build a Tesla factory so that the company could work in the country. The automaker didn’t want that until now, preferring instead to offer imported cars from China. Here is the catch – very high import tariffs, which make Tesla unprofitable and expensive.
Multiple sources zoomed in Bloomberg have said that the two sides are finally approaching a deal – it provides that next year Tesla can import cars to India from its factory in China, while within two years Tesla must establish its own factory. Also, the contract includes a clause that provides for the purchase of spare parts from Indian suppliers worth 15 billion dollars. Unofficially, there is talk of Tesla’s idea of building a battery factory in India as well, but given the previous unsuccessful efforts to reach any tangible agreement, such a project is surely in the distant future.
2023-11-28 08:00:00
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