While the Indian government is preparing to deploy its electric vehicle policy (EV) in April, which allows automobile companies to import vehicles at 15% import rights, Tesla should initially focus on its direct sales model to the consumer (D2C) in India. The manufacturer based in the United States can start operations by importing vehicles and selling in stores belonging to the company before assessing local manufacturing at a later stage, sources at Awards Today said.
The upcoming program for promoting the manufacture of electricity passenger cars in India (SPMEPCI) which should be deployed in April is designed to attract global manufacturers of electric vehicles by offering incentives such as reduced import rights and support to local production. Politics aims to position India as an EV key manufacturing center.
The program to promote the manufacture of electricity passenger cars in India (SPMEPCI) aims to attract global manufacturers of electric vehicles by offering import rights from 70% to 15% to a maximum of 8,000 vehicles per year , provided that companies undertake to make local. To qualify, manufacturers must invest at least 4,150 crosses ($ 500 million) within three years and achieve targets of additional national value (DVA) of 25% by the third year and 50% by the fifth year . In addition, up to 5% of investments committed can be allocated to the development of infrastructure. The policy allows investments of Greenfield and Brownfield, positioning India as a hub for EV production.
Although Tesla has not yet participated in the recent government consultations on DV policy, sources indicate that the company closely monitors developments and assesses its options.
“In mid-January, we invited the stakeholders, including the OEMs, for discussions on politics, but no Tesla representative attended,” said a manager.
Tesla should enter India through its D2C model, lining up with its global vehicle sales strategy directly to customers. Depending on market dynamics and political considerations, society can explore manufacturing in India in the future.
Meanwhile, car manufacturers such as Hyundai, Kia and Volkswagen have expressed their interest in the new policy and can take advantage of its incentives.
“We would welcome Tesla’s investment in India because it would create jobs and strengthen local supply chains,” added the source.
