Indian Economy News

Electric car Tesla may set up manufacturing plants in India, Mexico in 2025

  • IBEF
  • April 26, 2024

Tesla plans to manufacture its US$ 25,000 electric car in India and Mexico by 2025 or later, aligning with Mr. Elon Musk's strategy to utilize existing factory capacity before expanding. With factories in the US, Germany, and China, Tesla aims to produce 1.8 million vehicles annually by 2023. However, its global capacity stands at 3 million vehicles per year.

During an earnings call, he projected a 50% production increase by 2023, indicating full utilization of existing capacity by 2024, potentially extending into 2025. This timeline coincides with India's electric vehicle policy, mandating local manufacturing by 2027, and Tesla's plan to introduce new models in mid-2025. Despite potential cost implications, he affirmed that new models, including affordable ones, could be produced alongside existing vehicles, allowing Tesla to exploit its 3-million-vehicle capacity and achieve a 50% growth by 2023 before considering new manufacturing investments.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.