Has Tesla Permanently Cancelled India Factory Plans? Truth Vs Hype!
Tesla entered the Indian market a couple of years ago. Since registering its office in India, the company has faced several challenges, especially regarding import duties on electric vehicles. Tesla initially delayed its India launch plans because of ongoing discussions with the government over EV import taxes. After postponing its plans for almost a year, the company finally launched its EVs in India. However, there are still no signs of a manufacturing facility being set up in the country. Recent reports have even claimed that Tesla has completely cancelled its manufacturing plans for India. But is that really true? Let’s find out.
There are several reports online suggesting that Tesla has abandoned its plans to establish a manufacturing facility in India. Most of these reports quote a statement made by Union Heavy Industries Minister H. D. Kumaraswamy last year. However, what is currently circulating online is only part of the original information.
These reports are largely based on an article published by The Indian Express in June last year, where the minister reportedly said that Tesla was not interested in manufacturing in India at that time and was instead focusing on opening two retail outlets. Since then, Tesla has already opened those two stores.
This means that the recent stories claiming Tesla has officially cancelled its India manufacturing plans cannot really be confirmed. Most of these reports are simply resurfacing an old statement made by the minister last year. Since then, neither the government nor Tesla has issued any fresh official statement regarding the matter.
Similarly, Tesla itself has not officially confirmed that it has permanently dropped its manufacturing plans for India. So, until either the company or the government makes a formal announcement, the reports claiming Tesla has abandoned India manufacturing plans should be treated as unverified.
As mentioned earlier, Tesla is currently focusing on expanding its retail presence in India by increasing its dealership and experience-centre network. While Tesla is considered a mass-market EV brand in several international markets, that is not the case in India. High import duties and taxes have made Tesla vehicles significantly more expensive here, positioning them as premium products.
Tesla opened its first dealership in Mumbai and its second outlet in Delhi last year. The company also has a presence in Gurugram and Bengaluru. In the coming years, Tesla is expected to expand to more cities across India.
Tesla currently offers the Tesla Model Y in the Indian market. The electric SUV is priced from Rs 59.90 lakh, ex-showroom, and is available in Standard and Long Range variants.
The Standard version of the Model Y gets a 64 kWh battery pack generating 299 PS. It offers a claimed driving range of up to 500 km and can accelerate from 0–100 km/h in 5.9 seconds.
The Long Range version, on the other hand, gets a larger 78.1 kWh battery pack with a claimed range of around 622 km. This variant can sprint from 0–100 km/h in just 5.6 seconds.
Earlier this year, Tesla also launched a long-wheelbase version of the Model Y, known as the Tesla Model Y L. This version gets a dual-motor AWD setup, which is not available in the regular Model Y sold here. Bookings for this version have already started, while deliveries are expected to begin around June.
The Model Y L is a six-seater SUV and is around 179 mm longer than the standard Model Y. Prices for the Model Y L start at Rs 61.99 lakh, ex-showroom. Tesla claims that the Model Y L offers a driving range of up to 681 km.