Tesla, the world’s leading electric vehicle (EV) manufacturer, is reportedly on the brink of announcing its much-anticipated entry into India, likely during the Vibrant Gujarat Summit in January 2024.
What Happened? According to a report by the Ahmedabad Mirror, a local daily, this summit, a notable global investor event in Gandhinagar, might witness Tesla CEO Elon Musk unveiling the company’s plans for the Indian market.
Recent reports indicate that Tesla is finalizing negotiations with the Indian government for land to establish a manufacturing facility.
The American EV giant had previously reconsidered its investment in India following Prime Minister Narendra Modi’s visit to the United States, where he met with Musk. High import duties on electric cars, initially a stumbling block for Tesla, seem to have been reevaluated. Union Minister Piyush Goyal’s recent visit to a Tesla facility in the US further signifies growing interest.
What to know? Gujarat’s Sanand, known for hosting major carmakers like Tata Motors, Maruti Suzuki, and MG Motor, is the speculated location for Tesla’s manufacturing unit. The state’s strategic location, offering access to key ports like Kandla-Mundra for potential exports, makes it an attractive choice for Tesla.
While Sanand stands as a strong contender, Gujarat has also offered Tesla other locations like Becharaji and Dholera, and states such as Karnataka, Maharashtra, Tamil Nadu, and Telangana are actively competing for Tesla’s investment.
Tesla’s potential entry into India aligns with its broader ambitions to establish a battery manufacturing plant alongside electric cars. The company, known globally for its top-selling models like the Model 3, Model S, Model Y, and Model X, has yet to sell its electric cars in India due to high import duties. However, Musk recognizes India’s significant potential for electric vehicles and battery technology, setting the stage for a transformative entry into the Indian automotive market.
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