Telangana CM Revanth Reddy, the state's first Congress CM, recently told a small group at the Indian High Commission in London that the state should try to convince electric car makers Tesla and BYD to set up an organization. He said that he is doing so. CM Reddy has recently signed multi-crore deals with conglomerates like Adani Group, JSW, Tata Technologies and BL Agro. The World Economic Forum has also agreed to establish the Center for the Fourth Industrial Revolution (C4IR) in Hyderabad.
In July 2023, the Center denied permission to Chinese EV maker BYD to set up a manufacturing unit in Hyderabad. Tesla has expressed interest in expanding into India for more than two years, with former Telangana state Minister of Industry and Commerce KT Rama Rao reaching out to CEO Elon Musk on social media and offering an invitation to India. That is famous.
The Center rejected BYD Motors' proposal citing security reasons. BYD and Mega Engineering and Infrastructures had submitted a proposal for the sector worth $1 billion to the Department for Promotion of Intra-Industry Trade (DPIIT).
BYD, the world's largest electric car maker by sales, said in its proposal that it would manufacture 10,000 to 15,000 electric cars a year. Mega Engineering and Infrastructures is a Hyderabad-based infrastructure company involved in the construction of roads, bridges, and power plants.
Mega has put in capital and BYD has put in technology and know-how.
Meanwhile, Tesla is currently in talks to enter the country and is considering the possibility of investing about $30 billion over the next five years. The investment will be directed towards establishing manufacturing plants, developing the battery ecosystem and supporting related industries. Tesla is also demanding lower import taxes on electric cars.
If the Centre's new EV policy meets Tesla's requirement for a rebate on existing import duties on foreign-made EVs, the company will initially offer a limited range of standards to compete in India's luxury car market. A report by Hindustan Times said that the model will be introduced.
At the same time, Tesla will begin developing and testing its charging ecosystem. Additionally, Tesla may consider investing in a factory in India to build its first small car within the next two years, with the facility expected to be fully operational within three years.
“If the deal goes well, Tesla will invest $3 billion in the factory, and other partners in its manufacturing ecosystem will invest another $10 billion.In parallel, Tesla will invest another $5 billion in batteries. The investment will be made and it will grow to $15 billion. We are expecting a total of $30 billion,“ said a person close to the company and involved in project discussions,“ information quoted by HT. the source said.
The EV30@2030 campaign launched by the Ministry of Road Transport and Highways aims to achieve the target of 30 per cent of newly registered private cars, 40 per cent of buses, 70 per cent of commercial vehicles and 80 per cent of car ownership. I am. Two-wheelers and three-wheelers will be replaced by electric vehicles by 2030.