Tesla’s Budget Offering: The €25,000 Two-Door EV
Tesla, the electric vehicle (EV) pioneer, is gearing up to introduce its most affordable model yet, priced at €25,000 (approximately Rs 20 lakh). This eagerly anticipated two-door car is set to make its debut in Germany before venturing into the Indian market. Insights from sources reveal that the electric vehicle, either a two-door SUV or a sedan, is currently under development, positioning itself as the second Tesla model considered for the Indian market, following the Model Y.
Tesla’s Strategic Investment: Gigafactory in Germany and the Indian Connection
Tesla’s forward-thinking strategy includes a €5 billion investment in its Gigafactory situated in Brandenburg, Germany, marking its inaugural facility in Europe. The Model Y crossover is already rolling out from this plant, and the facility is slated for expansion to produce up to 1 million units annually. Moreover, the anticipated €25,000 car is also expected to be manufactured at this state-of-the-art facility. While the car is initially set to follow the Completely Knocked Down (CKD) route, with components imported from Germany, there are plans for extensive localization in India, aligning with the country’s growing importance in Tesla’s global supply chain.
India’s Role in Tesla’s Global Supply Chain: Import, Localization, and Future Plans
As India becomes a crucial player in Tesla’s global supply chain, trade minister Piyush Goyal announced that Tesla aims to double its imports of components from India. This aligns with Tesla’s plans to source components worth $1.7 billion to $1.9 billion from India in the current year, following a $1 billion investment in components last year. The move also sheds light on Tesla’s potential agreement with India, allowing the automaker to ship electric cars to the country from next year and possibly establish a manufacturing facility within two years.
Considerations for the location of this facility include Gujarat, Maharashtra, and Tamil Nadu, known for their well-established ecosystems for EVs and exports. The official announcement might be on the horizon, possibly at the Vibrant Gujarat Global Summit in January 2024, according to recent reports.
