Tesla closes in on establishing a footprint in India
India is nearing a deal with Tesla Inc. that would allow the US manufacturer to begin shipping electric vehicles to the nation next year and establish a facility within two years. One of the persons who declined to be identified because the conversations are confidential suggested an announcement might come during the Vibrant Gujarat Global Summit in January.
Another source claimed that the states of Gujarat, Prime Minister Narendra Modi's home state, Maharashtra, and Tamil Nadu are being considered since they already have well-established ecosystems for electric vehicles and exports.
According to one source, Tesla would commit an initial minimum investment of roughly $2 billion in any facility and would attempt to grow purchases of car components from the country to as much as $15 billion. According to the source, the US manufacturer would also want to manufacture certain batteries in India to save costs.
According to the sources, no final decision has been taken and the plans may alter. Tesla CEO Elon Musk stated in June that Tesla expects to make a "significant investment" in India and that he hopes to visit in 2024. Representatives from India's Ministry of Heavy Industries, which controls the vehicle industry, as well as the finance and commerce and industry ministries, did not reply to calls for comment.
Following a year-long stalemate, Tesla and India, the world's third-largest vehicle market, restarted talks in May. Musk has criticized India's high import levies and EV rules, while India has warned Tesla not to sell vehicles manufactured in China, its political adversary.
According to reports, India is considering decreasing import duties for multinational EV manufacturers over the next five years provided such companies agree to establish local plants.
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