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Tesla in India: Tesla will sell cars in the Indian market from next month. The company is looking for contract manufacturing, but it will be cheaper to install gigafactory. Labor cost and production costs in India will be low.
Tesla is currently manufactured in Chinese Germany and US.
Highlights
- Tesla will sell cars in India from next month.
- It will be cheaper to install gigafactory in India.
- Labor costs in India will be 2 to 5 dollars per hour.
New Delhi. Tesla’s cars may be available in the Indian market from next month. At present, the company will sell cars in India only through imports, but soon it will have to manufacture its cars in India. If the company does not do this, then it will not be able to import its cars cheaply. In such a situation, if Tesla manufactures cars by setting up its factory in India, then how cheap it will be?
Search for contract manufacturing
All the automobile companies in India can produce a total of 62 lakh cars in their factory every year, but only 75% of it can be produced. In such a situation, Alan Musk’s Tesla is initially exploring the option of contract manufacturing to use the remaining 25% capacity. But in the true sense, it can be beneficial to put Tesla in India.
How cheap will Tesla be in India?
Tesla currently has 5 Gigafactory in the world, 3 in America, one in Germany and one in China. The company also has a plan to install a gigfactory in Mexico. According to the news of ET, if Tesla sets up a 5 lakh units of gigafactory annually in India, it will be very cheap than the US and Germany. This will also reduce its production cost. If the gigafctor of this capacity is installed in Berlin, Germany, then its cost will come up to $ 5 billion. At the same time, its cost will reach $ 7 billion in Texas, USA. Whereas in India it will cost only 2 to 3 billion dollars.
Input and labor cost will be less
The saving of the company will be not only in the cost of the factory but also in the labor cost. Labor costs in India will be $ 2 to 5 (maximum Rs 500) per hour, while in the US it will go to $ 36 per hour and in Germany $ 45 per hour. On the other hand, if the company will make a car in India itself, then it will get the benefit of the supply chain, the benefit of the big consumer market and the benefit of tax exemption from the government for a few years.
Contract manufacturing disadvantages
If Tesla takes the path of contract manufacturing, it may also have to suffer many damage. Due to this, he will not have control of supply chain. At the same time, his delivery timeline will be affected. Not only this, its cost will also be higher. On the other hand, if she sets a factory in future, then she will have to start with zero.
