Tesla is eyeing India for its battery storage systems and electric vehicles (EVs). The American EV manufacturer has submitted a proposal to Indian officials seeking incentives to establish a Powerwall battery storage factory in the country. The Powerwall is designed to store electricity from sources like solar panels or the grid for use during outages or at night. While Tesla requested incentives for the factory, Indian authorities indicated they may not be available but are considering offering subsidies to encourage product adoption.
Tesla is also in discussions about building an EV factory in India to produce a car with a target price of around $24,000 (approximately ₹19 lakh). These negotiations are reportedly being overseen directly by Indian Prime Minister Narendra Modi.
India has been working to increase its non-fossil fuel power capacity, targeting 500GW by 2030, up from the current 186GW. Tesla’s proposal aligns with India’s goals to enhance its battery storage capabilities and reduce reliance on coal-based power generation. However, officials have stressed the need for Tesla to reduce the cost of its battery storage products to unlock the market’s potential, given the expected high demand. Tesla’s Powerwall, which includes incentives, costs over $5,500 in California, with additional expenses for solar panels.
While both Tesla and the Indian government are interested in the proposal, it remains uncertain whether the plan will come to fruition. Tesla aims to expand its presence in India and find residential and industrial customers for its battery storage systems, which could potentially serve as a solution for India’s electricity supply challenges.