Elon Musk Finally Speaks Up On Tesla's India Plan - Check His Two-Word Tweet

As per industry experts, Tesla cars will be expensive but may eventually become more affordable for the Indian upper middle class when the company starts production.

(File Photo/ Getty)

New Delhi: After Tesla, the leading electric car manufacturer registered in India, its Chief Executive Officer (CEO) Elon Musk took to Twitter to confirm the India plans for Tesla centres in five states with a two-word tweet, “As Confirmed”. According to reports, says Tesla cars will be expensive but may eventually become more affordable for the Indian upper middle class when the company starts production. Musk’s tweets are the first reactions after news broke of Tesla registering an office in Bengaluru on Tuesday. The Tesla CEO has tweeted several times in recent years about his India plans. In October, he had said, "Next year for sure" in reply to a post with a photograph of a T-shirt with the message: "India wants Tesla".

Tesla Is Preparing for a Robust Entry into India ???????? , a Multi-Billion Dollar Markethttps://t.co/P2J4YAoy5b

— Tesmanian.com (@Tesmanian_com) January 13, 2021

According to a report by Tesmanian, a fan site of the electric car maker, Tesla is in talks with five states to open stores, an office, an R&D centre, and a factory for production. The report also explains that in a country where there are vast economic disparities, Tesla is focusing on the “wealthy segment”. "Many people assume that if most of the country's population is poor, then there is no market for Tesla. However, they need to understand that the company is not aimed at selling cars to the entire population of India. In fact, out of 1.387 billion people, the producer is targeting a smaller (relative to the entire population), but a rather wealthy segment of the population," the report said. "As sad as it may be, out of this population, about 1.3 billion people will not be able to afford a car like Tesla. However, there is still a market for the company of around 85 million people who can afford to buy a premium car." The blog also said that as most of the country's richest people have been waiting for the company to come here for several years now, Tesla has a huge market in the country. "At the moment, due to the high tariffs in India, Tesla cars will be expensive. Nevertheless, if the company has its own production, it will reduce the cost of cars to an acceptable level, which will make them more affordable. Thus, at some point, Tesla cars may become affordable for the middle class as well," says the Tesla blog. Meanwhile, the BS Yeddyurappa led government in Karnataka has offered land to Tesla on the outskirts of Bengaluru, to set up a manufacturing facility. Chief Minister BS Yediyurappa confirmed in a tweet that the carmaker was setting up an R&D unit in Bengaluru. "Karnataka will lead India's journey towards Green Mobility. Electric Vehicle Manufacturer Tesla will soon start its operations in India with an R&D unit in Bengaluru. I welcome Elon Musk to India and Karnataka and wish him all the very best," he wrote on Tuesday. On Tuesday, the company registered its Indian subsidiary under the name "Tesla India Motors and Energy Private Ltd". It is expected to start operations by June. The first product to be sold will be the Model 3 sedan, according to reports.