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Tesla has been planning to enter the Indian car market with the introduction of new and affordable electric cars. However, recent media reports revealed that Tesla will not invest in developing new manufacturing lines, instead, it will use the existing factories to build affordable cars for Indian customers.
Tesla Focuses on Existing Models and Markets
At present, Tesla wants to give more attention to its existing production lineup instead of investing in new factories. In fact, the company aims to boost its production capacity by 50 percent. The company is currently manufacturing close to 3 million cars in the existing production facilities..
Expanding Capacity Would Be Challenging
According to the analysis report, Tesla's vehicle volume growth rate would be lower in the coming years in comparison to previous years. Following this, the company would face challenges if it encountered slow sales growth after expanding its production capacity.
Elon Musk Postponed India’s Visit
The CEO of Tesla, Elon Musk was expected to meet Indian Prime Minister, Narendra Modi to announce major investments in auto factories to develop small and affordable models. Unfortunately, Musk cancelled the meeting, quoting "very heavy Tesla obligations". But he has plans to come to India later this year.
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