Tesla, headed by Elon Musk, is reportedly on the verge of entering the Indian market, with plans to announce the deal during the Vibrant Gujarat Global Summit in January 2024, according to Bloomberg. The electric car manufacturer is considering Maharashtra, Tamil Nadu, and Gujarat as potential locations for its factory in India. The anticipated initial investment from Tesla is USD 2 billion, with plans to increase auto parts purchases from India to around USD 15 billion. Although the details are not finalized and subject to change, Tesla is eyeing Maharashtra and Tamil Nadu due to their established electric vehicle ecosystems, while Gujarat is attractive due to rapid infrastructural development.
In addition to shipping electric vehicles, Tesla plans to manufacture batteries in India to reduce costs. This move aligns with the Modi government’s push to increase electric vehicle adoption in the country. Despite India’s low electric vehicle market share, Tesla aims to capitalize on the potential revenue boost. The company already has factories in the US, China, and Germany.
The report also highlights the potential price reduction for Tesla vehicles in India, from the impact of high import tariffs to as low as ₹15 lakh if produced locally. The development signifies Tesla’s strategic move to tap into a growing market and align with India’s push toward sustainable transportation