Now Tesla needs to lay down investment plans for EV plant in India: Industry Secretary

Rajesh Kumar Singh, the Industry Secretary of India said that now Tesla needs to outline its investment strategies for the country after the Government of India cut down the import duties on electric vehicles. Last month, the industry department also introduced a detailed policy to enhance EV manufacturing in the country.

“We will help them out in terms of giving them the contacts at state level,” Secretary of Department for Promotion of Industry and Internal Trade, Rajesh Kumar Singh told a news source. “There have been contacts made at that level with state governments and the central government. VinFast has already announced and we expect a few others,” he added.

The Vietnamese automaker, VinFast has started the construction of an electric vehicle manufacturing facility in the southern Indian state of Tamil Nadu.

It is reported that Tesla has planned to deploy a team to explore potential locations in the country for a proposed electric car plant valued at $2 billion to $3 billion. The company is also aiming to enhance its procurement of auto parts from India to approximately $15 billion.

Before committing a significant investment in India, Tesla stressed upon the reductions in import taxes as a prerequisite.

In March, the government announced that companies that are seeking tax concessions must invest atleast Rs 41.5 billion ($500 million) and commence electric vehicle production from a local plant within three years.

Singh is optimistic that this policy will boost the growth of electric vehicles in the country.