Tesla Inc investments in India subject to concessional imports
News: As per media sources, Tesla Inc (Global Electric PV player) is looking at conditional investments in India subject to quantum of cars being allowed to import in India at a lower tariff. It is looking to invest up to US$ 500 million if allowed to import 12,000 cars at a concessional duty of 15% and augment it to US$ 2 billion if allowed to import 30,000 cars at lower duty. In terms of localisation, it is initially planning to localise 20% with intent to increase it to 40%. In terms of models, it plans to import its existing models as well as a new cost-effective hatchback for Indian markets at a price point of ~₹25 lakh.
Views: Indian government on the other hand is looking at restricting concession imports at 10% of vehicle sales (at around 10,000 units for FY24 given we are poised to clock ~ 1 lakh sales volume) to safeguard the interest of domestic Electric PV industry which we believe is a fair deal with limited impact to incumbers.