Elon Musk: Tesla is coming to India this year

Elon Musk, founder of Tesla and SpaceX, has confirmed Tesla’s launch in India this year. In response to a query about the expected timing on Twitter, the tech entrepreneur responded that the company is “hoping for summer this year”.

The move into the Indian market was first announced almost a year ago, and has attracted significant interest.

First announced in April of last year, Musk said that Tesla planned to enter India before production of the Model 3 mass-market sedan went into production. With production beginning in mid-2017, the company is certainly looking to cut it close on fulfilling their timeline for entering the country.

The Tesla Model 3, the company’s long-awaited mass-market offering

However, the Indian market is one that is sure to be hugely attractive to Tesla, particularly when taking into account not just the massive growth within the country itself but the position it offers as a hub for marketing further into Asia. According to Tesla’s chief information officer, Jay Vijayan, the company is planning to build a manufacturing plant in India, and the Indian government seems very keen for them to do so.

In July of last year, Indian Union transport minister Nitin Gadkari offered Tesla land near major Indian ports to encourage the use of India as Tesla’s Asian manufacturing hub. Such proximity would offer much greater ease in exporting the vehicles to South and South East Asian countries.

The minister’s land offer to Tesla followed a visit to their San Francisco factory and came with the offer of a joint venture between the firm and Indian automobile companies to promote eco-friendly road transport in India. Such offers form part of India’s wider push for electric vehicles in the country and, particularly, electric vehicles built within India.

“The biggest challenge is cost and all of us would have to work on it so that people can afford and easily adopt this new technology. To make it cheaper, we would have to work for make-in-India and (that) is the solution for making electric vehicle affordable,” said Girish Shankar, secretary, ministry of heavy industries and public enterprises.

Images courtesy of Tesla

As part of the attempt to make electric vehicles more affordable, the Indian government announced a scheme in March of last year to provide electric cars on zero down payment for which people can pay out of their savings on expensive fossil fuels. Ambitiously, the government hopes to have become a 100% electric vehicle nation by 2030.

While the goal may be a challenge, there are already positive signs. In the year ending 31st March 2016, sales of electric vehicles in India grew by 37.5% to 22,000 units.

As it stands, this is still a far cry from the objective stated in the National Electric Mobility Mission Plan (NEMMP) 2020 and FAME (Faster Adoption and Manufacturing of Electric Vehicles) that the country would have 6 million electric vehicles by 2020. However, acquiring in-country manufacturing with countries like Tesla represents a substantial early step.

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