In this way Tesla can produce ‘Make in India’ EV worth Rs 20 lakh

New Delhi: Elon Musk is visiting India for the first time later this month to spend at least 48 hours in the country. As all eyes are on what the billionaire will announce during his meeting with Prime Minister Narendra Modi and industry leaders, Tesla lovers have only one question: when will they finally be able to drive the ‘Make in India’, affordable EV? A cheaper Model 3, which is the entry-level Tesla, may only be possible with local manufacturing of battery components and a strong EV supply system, for which Musk will definitely have to make an important announcement during his first visit to the country. Will happen.

At present, Tesla prices are almost the same across the world. The price of the base variant of Model 3 is more than $ 40,000 (about Rs 33.5 lakh). According to Soumen Mandal, senior analyst at market intelligence firm Counterpoint Research, Tesla setting up local production will eliminate import duties, paving the way for an affordable Tesla car. Also, cost reduction can be achieved if Tesla cars manufactured in the country come with fewer features compared to cars available globally.

Mandal told IANS that some of the hardware required for Full Self-Driving (FSD) mode could be eliminated and “Advanced Driver Assistance System (ADAS) Level 2 could be included”. Tesla could eventually produce 5 lakh electric vehicles annually in India starting at Rs 20 lakh. To make a car worth Rs 20 lakh, Tesla may also have a battery pack with a capacity of less than 50kW and the electric motor may be of lower power. Electronics in the vehicle can also be minimized with a smaller center display.

In the new EV policy, the Indian government has reduced the customs duty on imported cars to 15 percent (with certain conditions) from the earlier 100 percent. A minimum investment of Rs 4,150 crore (about $500 million) will be required to set up manufacturing facilities for EVs in the country. According to industry experts, Tesla could generate revenues of at least $3.6 billion in India by 2030.