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Last Updated : Oct 07, 2015 09:35 PM IST | Source: CNBC-TV18

Tesla plans to build assembly unit in India: Sources

Tesla is exploring building assembly unit in India for its Tesla Model 3. This model is currently assembled in Netherlands and sold in the Europe market.

American automotive and energy storage company Tesla Motors is considering building an assembly unit in India. The company designs, manufactures, and sells electric cars, electric vehicle power train components, and battery products.

Tesla is planning to build this assembly unit for its Tesla Model 3, which is currently assembled in Netherlands and sold in the European market.

In addition, the company is in talks with the government to rationalise import duty on electric cars and is seeking to develop a separate category for electric vehicles.

This is speculated to be triggered by Prime Minister Narendra Modi's meet with Tesla CEO Elon Musk in his recent visit to Silicon Valley. Sources say it has peaked Musk's interest in the 'Make in India' pitch.

While a full-fledged manufacturing unit could be far away, this assembly unit is likely to be the gateway for Tesla's Asian markets.

It is learnt that the company has identified India to be its hub in Asia for which the company is conducting an initial market research.

With an approximate price of USD 30,000-40,000, the company may also launch Tesla Model 3 in India by 2016 end or early 2017.

Tesla currently sells Model S in only two Asian countries - China and Japan.

When contacted, Tesla said, "We were delighted to host Prime Minister Modi at the Tesla Factory. Tesla CEO Elon Musk and Prime Minister Modi discussed Tesla's developments in battery technology, energy storage, and renewable energy and the positive implications of this innovation for India."

"We are focused on Model S and Model X production at our factory on California. Other speculation about our production plans is premature," it added.

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First Published on Oct 7, 2015 11:31 am
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