Tesla India plant being considered in Gujarat, Maharashtra and Tamil Nadu
Tesla is on the brink of finalising a deal with the Indian government that would pave the way for the import of its electric vehicles into the country starting next year. Furthermore, the American automaker is reportedly eyeing the establishment of a manufacturing plant within the next two years, with an official announcement expected at the Vibrant Gujarat Global Summit in January, 2024.
Tesla is contemplating investments totalling around $2 billion for the construction of a new plant in India. The states of Gujarat, Maharashtra and Tamil Nadu are currently under consideration due to their well-established infrastructure. Additionally, Tesla aims to source auto parts from India, with an estimated value of up to $15 billion. The company is also exploring the possibility of manufacturing batteries locally to reduce production costs.
These plans are subject to change and there has been no official comment from Tesla or its CEO, Elon Musk, regarding these recent developments. Elon Musk had previously mentioned in June about Tesla’s intention to make a “significant investment” in India, expressing a plan to visit the country in 2024.
The move comes as part of Tesla’s broader strategy to expand its presence in emerging markets and tap into the growing demand for electric vehicles. While electric cars constituted only 1.3% of all passenger vehicles sold in India last year, Tesla aims to overcome challenges such as high tariffs and the limited availability of charging infrastructure.
Tesla’s entry into the Indian market has been eagerly anticipated and the company currently does not directly import cars into the country due to the existing high tariffs. Once the locally manufactured Tesla vehicles are available for sale, there is a possibility that prices could be as competitive as $20,000 (Rs. 16.65 lakhs), potentially making electric cars more accessible to a wider audience.
Recent developments also include Union Minister Piyush Goyal’s visit to the Tesla factory in Fremont, where he was scheduled to meet Elon Musk. Although the meeting did not take place due to Musk’s health, Goyal engaged with top leadership and researchers at the Tesla factory. Musk assured the minister of a future meeting, highlighting the mutual interest and importance of such collaborations.