India is the world’s third-largest new car market, after China and the US, and the two top electric vehicle manufacturers are looking to tap into this market with affordable models.
Tesla is discussing an investment agreement with the Indian government under which the US automaker will open a factory in the country with an annual capacity of 500,000 vehicles, according to a source. Reuters The report was published last week. Tesla will also use India as an export base, shipping cars to other countries in the Indo-Pacific region, the report said.
The plant will produce affordable electric vehicles starting at 2 million rupees, or $24,400 at current exchange rates. That’s a lot cheaper than any of Tesla’s current models, and a lower price than Tesla can manage by importing cars into India, which will reportedly be subject to import duties as high as $100. %.
Tata Nexon tram
That target price, however, is still more than double that of India’s cheapest electric vehicle, the MG Comet, and 500,000 rupees (about $6,000) more than the market’s best-selling electric vehicle, the Tata Nexon EV. India-based Tata has also announced a electric scooter $10,000 for the home market last year.
An affordable Tesla has been around for a long time. The company reconfirmed in 2021 that it is global EV development in China is intended to be more affordable. After that, CEO Elon Musk later suggested that the project was suspended. By the end of 2022, Tesla confirmed that the third vehicle platform will exceed the output of all other vehicles combined, with cars half price to make.
Meanwhile, China’s BYD is planning to produce electric vehicles for the Indian market in partnership with a local company, Megha Engineering and Infrastructures. according to Reuters. The $1 billion plan, recently submitted to Indian regulators, includes local battery production and a complete line of electric vehicles, ranging from mechanical hatchbacks, the report said. versions to luxury cars.
BYD Han EV
BYD entered the Indian market in 2007, producing batteries and other components for mobile phone manufacturers. If it can start selling cars there, it will be available in every major new auto market globally except the US, the report notes.
Company penetrate the European market last year and is said to have started supplying batteries to Tesla on a limited basis. BYD already manufactures and sells electric buses in the US, but it has not been able to establish a foothold in the passenger car business there.
BYD has long been a proponent LFP . battery technology. In recent years, many automakers, including Tesla, have begun to see it as a great fit for affordable electric vehicles. BYD introduces current generation LFP battery technology with Blade battery in 2020.
