Tesla is planning to send a team of people to scout for locations in India this month. The broad brush strokes of the upcoming discussions reportedly will affirm the company’s investment plans in the South Asia nation — including setting up a manufacturing facility and increasing purchases of auto parts from India to nearly $15 billion.
India is the world’s most populous nation and the world’s 3rd largest auto market, yet its EV market accounts for just 1.3% of the total EVs sold last year worldwide.were sold in India in 2023, nearly double a year earlier, with projections that the sales number could increase by another 40% in 2024.
To get tax concessions, Tesla and other EV companies will have to invest at least 41.5 billion rupees and start producing EVs from a local plant within 3 years. Automakers have committed nearly $5.4 billion in investments to set up or expand their EV manufacturing facilities in India, data fromThe pressure is on India to decarbonize significantly, as it is the world’s 3rd largest greenhouse gas emitter. The country has set a goal to be net zero by 2070.
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