Report: Tesla may enter the Indian market starting from battery storage production

Tesla may start producing products in India. However, according to reports, although it is expected to build an electric vehicle factory, the company may start with battery storage production.

According to Reuters, citing unnamed sources, Tesla has developed a strategy to manufacture and sell battery storage systems in India. It is said that the manufacturer has submitted a proposal to government agencies seeking incentives to build factories as part of Tesla's efforts to establish business in the country.

The company has been in serious negotiations for several months to establish an electric vehicle manufacturing factory in India. It is rumored that it will produce a car there for about $24000. This makes sense because the company has developed a car on a new platform, which is priced significantly lower than the current product.

However, at a recent meeting in New Delhi, Tesla also proposed a contribution to India's battery capacity through its Powerwall system. The company's household batteries are designed to store energy generated by solar panels or the power grid. Then, this energy can be used at night or during power outages.

The second source stated that Tesla is actively seeking residential and industrial customers for its battery storage solutions. They can support Powerwall's entry into the Indian market.

A large-scale policy level calibration is needed. Tesla's goal is to conduct Powerwall business in India, "the source said.

India is indeed facing severe energy challenges. The country heavily relies on coal for power generation. In 2022, the country faces the most severe energy crisis in over six years, mainly due to coal transportation issues. Energy storage systems can help solve this problem, but they are expensive. Tesla is one of the few companies in the world that can effectively reduce the cost of such batteries and bring them to consumers at a lower price. Meanwhile, its positive impact is also evident globally.

--------This article is partly excerpted from Reuters.