Tesla's most affordable product, which will be priced at €25,000 (Rs 20 lakh+) for the European market, is likely to be called Model2, as per sources. This two-door car is anticipated to debut in Germany within the next few years, with plans for subsequent availability in India, sources told Moneycontrol on November 22.
As per sources privy with the company’s plans, “The yet-to-be-launched car will be the most affordable model by Tesla that will be launched in Europe, followed by India. While product development plans are going on, the electric car will be a two-door SUV or a sedan. For the Indian market, it is likely to be an SUV.”
If the development turns out to be true, this will be the second model to be considered by the San Carlos, California-based EV maker for India, after Model Y. Earlier, Moneycontrol had exclusively reported that Model Y crossover will be the first model to be available in the country.
An emailed query sent to Tesla's global spokesperson remained unanswered until press time.
Tesla has invested €5 billion to set up a Gigafactory at Brandenburg in Germany, which, incidentally, is its first facility in Europe. The US-based EV maker rolls out the Model Y crossover from this plant, which is to be expanded to 1 million units per annum. The company is also gearing up to roll out the €25,000 car from this facility in the medium term.
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“While Tesla has earmarked its German facility for its most affordable car, it expects sizable volumes of this model from the Indian market. The unnamed Rs 20 lakh car, will initially follow the Completely Knocked Down (CKD) route with kits being imported from Germany and will later be heavily indigenised in India,” one of the sources quoted above told Moneycontrol.
Meanwhile, trade minister Piyush Goyal had said earlier that Tesla is planning to double the number of components it imports from India.
"Proud to see the growing importance of auto component suppliers from India in the Tesla EV supply chain. It is on its way to double its components imports from India," Goyal posted on X, earlier called Twitter, after visiting Tesla's manufacturing facility in Fremont, California.
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Goyal had said in September that Tesla was aiming to source components worth between $1.7 billion and $1.9 billion from India this year, having bought $1 billion of components last year.
Bloomberg has recently reported that India is on course to forge an agreement with Tesla that would allow the US automaker to ship its electric cars to the country from next year and set up a factory within two years.
An announcement could come at the Vibrant Gujarat Global Summit in January 2024, as stated in the same report, adding that Gujarat, Maharashtra and Tamil Nadu are under consideration as they already have well-established ecosystems for EVs and exports.
"Tesla's "affordable" car could actually be a bit of a disappointment from the perspective of quality and creature comforts. They will have to strip down a lot to meet a price point," Avik Chattopadhyay, auto industry veteran and co-founder of brand consulting firm Expereal.
He went on to add, "It is okay for Europe which has already experienced their Y and X. For a new market like India, not smart to start with this. Bring the Y and X in to maintain the image standing then go down to get more into your fold."
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