Tesla is gearing up to unveil its most budget-friendly model, priced at €25,000 (over Rs 20 lakh), with an initial launch slated for Germany, followed by an introduction to the Indian market.
Sources close to Tesla’s plans disclosed that this unnamed vehicle, likely to be a two-door SUV or sedan, will be Tesla’s most affordable offering in Europe before making its way to India.
Tesla To Launch Budget Friendly Automobile in India?
This marks Tesla’s second model for the Indian market, with the Model Y crossover being the first, as previously reported by Moneycontrol.
Tesla’s hefty €5 billion investment in the Gigafactory in Brandenburg, Germany, its inaugural European facility, is pivotal to these plans.
Currently, the factory produces the Model Y crossover, with future expansion plans aiming for a capacity of 1 million units annually, including the production of the €25,000 car in the medium term.
Despite being earmarked as Tesla’s most affordable car, the German facility anticipates substantial demand from the Indian market. Initially, the Rs 20 lakh car is expected to follow the Completely Knocked Down (CKD) route, with kits imported from Germany. However, there are plans for significant localization in India as the production matures.
India’s Role in Tesla Supply Chain
India’s role in Tesla’s supply chain is growing, with Trade Minister Piyush Goyal expressing pride in the increasing importance of Indian auto component suppliers in Tesla’s operations.
Tesla aims to double its component imports from India, with expectations to source components worth between $1.7 billion and $1.9 billion from India this year.
In a recent report, indications suggest that India is on the verge of finalizing an agreement with Tesla. This deal would allow the US automaker to ship electric cars to India from next year and potentially establish a factory within the country within two years.
An official announcement is anticipated at the Vibrant Gujarat Global Summit in January 2024, with Gujarat, Maharashtra, and Tamil Nadu being considered as potential locations due to their established ecosystems for EVs and exports.
