Tesla may start manufacturing products in India. However, despite expectations of building an electric vehicle factory, the company may start with battery storage production, according to the report.
Tesla has formulated a strategy to manufacture and sell battery storage systems in India, Reuters reported, citing unnamed sources. The manufacturer allegedly submitted a proposal to government agencies seeking to provide incentives for building the factory as part of Tesla's efforts to establish a presence in the country.
The company has been in serious talks for several months to set up an electric vehicle manufacturing plant in India. According to rumors, there it will produce a car costing about $24,000. This makes sense since the company has developed a car on a new platform that can be sold at a significantly lower price than the current offerings.
However, during recent meetings held in New Delhi, Tesla also presented a proposal to contribute to India's battery capabilities through its Powerwall system. The company's home batteries are designed to store energy generated by solar panels or the grid. Then, this energy can be used at night or during power outages.
Tesla is actively seeking both residential and industrial customers for its battery storage solutions, the second source said. They could support Powerwall's entry into the Indian market.
“Large policy level calibration will be required. Tesla's intent is to have the Powerwall business in India,” said the source.
India does face serious energy challenges. The country relies heavily on coal-based electricity generation. In 2022, the country faced its worst energy crisis in more than six years, mainly due to problems with coal transportation. Energy storage systems could help solve this problem, however they are expensive. Tesla is one of the few companies in the world that can effectively work to reduce the cost of such batteries and bring them to consumers at lower prices. At the same time, the positive effect of this would be noticeable on a global scale.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.