Elon Musk-led Tesla aims to cut costs for its anticipated affordable car in India by introducing smaller fast-charging batteries, according to a recent report by Mint.
These batteries, already utilized in China, could significantly reduce the price of Tesla's proposed Indian vehicle. The Model 3, Tesla's current most affordable car in India, starts at approximately Rs 33 lakh. The new concept vehicle being considered may target a price point around Rs 20 lakh.
Batteries constitute a substantial portion of an electric vehicle's cost. Tesla is also exploring technologies to decrease charging duration, even with the existing fast-charging infrastructure in India. Earlier reports suggested Tesla's collaboration with Israeli startup StoreDot to explore ultra-fast charging battery tech.
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However, experts cited in the Mint report highlight challenges. Smaller batteries might necessitate more frequent charging and rely on an extensive network of fast chargers, an infrastructure shortfall in India. Currently, the country hosts only 9,300 public chargers compared to 138,000 in the USA.
Tesla has committed to investing up to $2 billion in an Indian factory but has requested a 15% concessional duty on imported cars for the factory's initial two years. Presently, import duties range from 70-100%.
The Indian government is actively engaged in discussions with Tesla regarding its entry into the Indian market.