The Indian government has provided confirmation that Tesla is showing interest in establishing an electric vehicle (EV) manufacturing base within the country. India is an attractive manufacturing base due to several factors: EV sales in India grew 20% in financial year 2021 over a year earlier, and the government is offering USD2.5bn of incentives to companies setting up advanced battery manufacturing units. Manufacturing of EVs and batteries would also lead to lower import taxes and result in the company gaining a foothold in one of the largest automobile markets in the world. These plans signify a shift in stance by Tesla, which late last year was focused on seeking lower import taxes on cars rather than setting up a factory to manufacture EVs within the country.
Tesla is offering discounts of over $1,300 for some Model 3 cars in stock at its US dealerships, following steeper cuts offered in Europe, according to Reuters. While the move marks a U-turn from Tesla's record of not offering sales incentives, experts warn that the e-car maker is facing new competition and economic headwinds. Tesla CEO Elon Musk recently told shareholders that Tesla would advertise for the first time, but also warned the global economy would be difficult for at least the next 12 months.
Tesla has listed its China-made vehicles for sale in Canada with the availability of the Model 3 and Model Y. Although it's not clear how many vehicles have already been sold, this export can bring new markets for Tesla Shanghai and helps the EV maker keep vehicles manufactured in California and Texas for sale in the US. Additionally, it could give Tesla a cost advantage, and these China-made vehicles qualify for Canada's federal incentives of $3,700, which are not linked to the EV's manufacturing location.
