Tesla explores land in Maharashtra to establish EV assembly plant
What's the story
Elon Musk's electric vehicle (EV) company, Tesla, is said to be looking for land in Satara, Maharashtra. The search is being conducted to set up a Completely Knocked Down (CKD) assembly unit for its EVs, Business Standard reports. The EV maker has previously held talks with Hyderabad-based Megha Engineering and other Indian firms for a possible joint venture for the CKD unit.
CKD explained
CKD assembly units: A strategy to reduce import duties
CKD assembly units refer to a business model where vehicles are shipped in parts to a foreign country for assembly and then sold. This strategy is mainly employed as a way to reduce import duties. Setting up such a unit would be another major move from Tesla as it gears up for its entry into the Indian market later this year.
Job postings
Job postings indicate Indian market entry
Tesla has posted job advertisements for various positions in Mumbai, Delhi, and Pune. This move comes as an indication of the company's plans to enter the Indian market after Musk's meeting with Prime Minister Narendra Modi during his US visit. In March, it was reported that Tesla had signed a five-year lease for its first India showroom in Mumbai to sell imported EVs.
Leadership change
Country head for India steps down
Recently, Tesla's country head for India, Prashanth Menon, resigned after spending nine years with the company. His exit comes just ahead of Tesla's planned entry into the Indian market. According to Bloomberg, Tesla's India operations will now be handled by its teams based in China. The leadership change comes as the company gears up for its expansion into one of the world's largest auto markets.