Tesla Sends Team to India to Scout Factory Sites
According to a Financial Times report, Tesla is sending a team to India this month to explore potential locations for a new electric vehicle (EV) manufacturing plant with a potential investment of US$ 2 to 3 billion. The electric vehicle giant is eyeing states like Maharashtra, Gujarat, and Tamil Nadu (South), which are known for their automotive hubs.
Tesla's potential investment could be one of India's largest inward foreign investments, with the potential to produce up to 500,000 cars annually once the factory reaches full capacity. This move comes after India relaxed import tariffs on EVs, a key demand from Tesla for setting up a local factory. Tesla is considering manufacturing a smaller, affordable car priced at less than $30,000 in the proposed Indian factory.
Prime Minister Narendra Modi's government sees Tesla's potential investment as a significant boost, especially ahead of a general election. Modi had urged Tesla CEO Elon Musk to invest in India during their meeting last year.
This expansion aligns with India's efforts to promote manufacturing and boost its EV industry, competing with China's dominance in the sector.
Additionally, Tesla might explore setting up a battery plant in India, following its "gigafactory" model seen in other locations worldwide. Despite India's slower EV adoption compared to China, local and international players are increasingly investing in the Indian EV market, indicating growing interest and potential for growth in the sector.
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Date of record
4 February 2024
