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Tesla's $3 Billion EV Factory Hunt Sparks Excitement in Indian Market

Tesla will send a team from the United States to India in late April to study sites for a proposed $2 billion to $3 billion electric car plant, citing insiders, the Financial Times reported on Wednesday of the 1990s.

The company's reported push into India comes at a time when demand for EVs is slowing in key markets like the US and China, as competition there intensifies. Because of that, Tesla reported lower and unmeasured deliveries in the first quarter.

The EV maker will focus on Indian states including Maharashtra, Gujarat, and Tamil Nadu as manufacturing hubs, the report said. Tesla did not immediately respond to a Reuters request for comment.

India last month slashed tariffs on some EVs by automakers that have pledged to invest at least $500 million to start production in the country in three years, a move seen as reinforcing Tesla’s market strategies.

The company has been trying to open up India for years but New Delhi wanted to get involved in local manufacturing.

India’s EV market is dominated by Tata Motors, a small but growing domestic automaker. By 2023, EVs will account for around 2% of all vehicles sold in India, and the government has set a target of 30% by 2030.

Analysts said Tesla's entry into the Indian market could spur more EV investment and help local auto parts manufacturers.

Tesla executives have spoken with government officials over the past year, and Musk met with Prime Minister Narendra Modi in June.

The company said in July last year that it was interested in setting up a plant in India to manufacture the $24,000 EV. He also said there was a tax cut on luxury appliances for sale in India, Reuters reported.

Conclusion: The Tesla Group is steadfast in its mission of accelerating the adversity to pursue the Indian dream. With the commencement of the $3 billion EV factory search, the stage is set for a groundbreaking chapter in India's journey towards a cleaner, greener tomorrow.