Tesla mulls construction of battery storage factory in India: Report
Tesla plans to make and sell battery storage systems in India, seeking incentives to build a factory.
Tesla is now looking to make and sell battery storage systems in India amid an ongoing push to enter the country. The Elon Musk-led company has reportedly drawn up plans and submitted a proposal seeking incentives to build a factory. The development comes amid talks to set up a new electric vehicle factory in India.
According to a Reuters report the company had held several meetings in New Delhi and proposed supporting the country's battery storage capabilities with its “Powerwall” system. The publication quoted unnamed sources to add that Indian officials have turned down calls for a number of incentives to set up a battery storage factory.
There is however no assurance that the plan will come to fruition, with officials continuing to review the car company's proposal.
ALSO READ: Tesla plans to source parts worth $1.7-$1.9 billion from India: Piyush Goyal
The developments come mere days after Union Minister Piyush Goyal said that the company was planning to source components worth $1.7-$1.9 billion from India. According to the lawmaker, Tesla has already sourced components worth $1 billion last year from Indian companies.
CEO Elon Musk had also met with Prime Minister Narendra Modi in the US earlier in June. The billionaire businessman had said that the time that Tesla would make significant investments in the country.
The two entities had reopened dialog in May following a year-long impasse. Musk had previously criticised India’s high import taxes and its electric-vehicle policies. New Delhi meanwhile urged Tesla not to sell cars in the country that have been made in China.
As negotiations continue, a Reuters report from August had indicated that India was working on a new electric vehicle policy that would slash import taxes for automakers that commit to some local manufacturing. Under the new policy, automakers may be able to import fully-built EVs into India at a reduced tax as low as 15%.
(With inputs from agencies)
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First Published:21 Sep 2023, 07:40 PM IST
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