On May 18, according to people familiar with the matter, Tesla asked car and battery manufacturers how they should participate in incentives related to the Indian government during discussions with Indian government officials this week。

According to media reports on Wednesday, Tesla intends to invest and build a factory in India to produce electric vehicles for domestic sales and export。In addition, the source also revealed that Tesla also plans to directly manufacture car batteries in India and has held private talks with Indian officials。

High tariffs in the Indian car market once scared off Tesla's second battle: Tesla's strategic shift is silent on tariffs

It is reported that Tesla once entered the Indian market and the Indian government to start negotiations, but India's high car import tariffs once made the new energy vehicle giant prohibitive.。According to the Indian government's budget released in February this year, all vehicles with a landing cost (including insurance and freight) of less than $40,000 will be subject to a 70% tariff, up from 60% previously, while vehicles with a current landing cost of more than $40,000 will be subject to a 100% tariff.。

In the previous negotiations, Tesla CEO Elon Musk (Elon Musk) wanted to test the Indian car market by importing cars first, so he actively sought to reduce the high import tax as much as possible, and even explored the possibility of a complete tax exemption.。However, India hopes that Tesla can directly build factories in the local production, drive the local car manufacturing industry chain, improve employment, the two eventually broke up, Tesla also suspended plans to enter the Indian car market。

Sources said that in this meeting, Tesla did not mention the tariff, but directly discussed the issue of investment in the local plant, but did not specify the specific location or investment amount.。Some analysts say the move may indicate a shift in Tesla's strategy, which is to build plants in the Indian market before selling them.。

Behind the "big change" is the "big business opportunity" Tesla aims at the potential of the Indian car market has been the first car companies layout

On the Indian side, the move is undoubtedly in their hands.。As the world's third largest car market, the current Indian government has made a bold statement to increase the proportion of electric vehicles in India's total car sales from the current 1% to 30% by 2030.。Of course, the Indian government is not talking crazy, behind this seemingly daunting task, there is actually a huge prospect for the country's new energy car market.。

According to the International Energy Agency (IEA) "2023 Global Electric Vehicle Outlook" released at the end of last month, India's sales of pure electric vehicles in 2022 will be close to 50,000, while China's sales will reach 4.4 million, compared with a wide gap.。But sales of nearly 50,000 vehicles in India have quadrupled from the previous year, which may mean change may be coming。The agency also said that in addition to sales growth, India's electric vehicle and parts manufacturing industry is also "accelerating."。

Thierry Koskas, CEO of Citroën, also believes that India's electric car industry is in the early stages of development, but given the habits of people there, the market prospects will be "perfect."。

It is reported that Volvo has taken the lead in launching the all-electric XC40 Recharge in India, and Audi has followed suit with the launch of the e-tron series.。In addition, some of the world's largest car companies are considering setting up branches in India.。

In summary, behind Tesla's seemingly "big change," it is actually aimed at the "big business opportunities" of the Indian auto market. There is no eternal enemy, only eternal interests.。

On May 16, Tesla also made another major change to its original development strategy.。At Tesla's 2023 shareholders' meeting held on the same day, Musk said that he would seek an advertising model for the first time in Tesla's 20-year history, and that Tesla has long promoted its own electric car products through word of mouth from fans, avoiding traditional marketing methods such as television, radio, newspapers and magazines.。

Apparently, Musk now wants to take Tesla ads to Mumbai, New Delhi, Kolkata, and every street in India。

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