Tesla Motors may set up India battery unit

Hyderabad: After an initial disappointment over US-based Tesla Motors setting up its factory in China, India has something to cheer about: The electric car and energy storage firm, Tesla, may manufacture its lithium-ion batteries in the country.

Responding to a question by a Gurgaon-based Daksh Jaiswal on Twitter, Tesla founder Elon Musk said, “Given high local demand, a Gigafactory in India would probably make sense in the long term.”

He, however, did not give any time frame on setting the factory. The company’s Power-wall, which contains lithium-ion batteries, is considered to be the best suit to develop off-grid power for rural areas.

During his recent US visit, Prime Minister Narendra Modi’ visited Tesla’s plant in the Bay Area and discussed with Mr Musk about the possibility to getting Power-wall technology to India to power remote villages.

In the US, Tesla currently sells America-made 10 kWh compact Powerwall battery for $3,500 (Rs 2.27 lakh), which is prohibitive for Indians. However, low manufacturing costs in India and high volumes could bring down the price tag considerably and make it appealing to Indians.

Denying the reports about Tesla shifting its manufacturing to China, Mr Musk said his company would continue to make the cars in United States. “My comments in China weren’t transcribed correctly. Tesla will keep making cars and batteries in CA and NV as far into future as I can imagine.”

Explaining further, the Tesla founder said, “A China factory for local demand could be as soon as a year after. A factory in Europe would happen for same reason.”