Elon Musk‘s Tesla is aiming to rope in a local partner for its Indian operations, with high-level discussions underway with Mukesh Ambani‘s Reliance Industries (RIL) for a potential joint venture to establish a manufacturing facility in the country.

What Happened: According to a source quoted by the Hindu Businessline, “Talks are at initial stages and have been ongoing for over a month.”

While the joint venture has yet to define RIL’s exact role, it seems likely that the conglomerate will play a major role in contributing to Tesla’s manufacturing setup and related ecosystem in India, another source involved in the discussions disclosed.

The move doesn’t indicate RIL’s intention to enter the auto sector, however, it is important to note that the conglomerate has previously collaborated with partners to innovate vehicle solutions. Last year, Reliance, in collaboration with Ashok Leyland, introduced India’s first hydrogen-powered heavy-duty truck and launched swappable electric vehicle batteries.

See also: Did Elon Musk Just Confirm Tesla’s India Entry With ‘Natural Progression’ Comment?

Tesla’s India plans: Tesla has earmarked $2 billion for its India expansion, eyeing locations in Gujarat, Maharashtra and even Tamil Nadu.

Confirming Tesla’s Indian market ambitions, Musk has stated previously that with India being the world’s most populous country, it’s only logical for Tesla to introduce its electric vehicles there.

Tesla officials are slated to visit India soon to finalize the plant’s location and detail the joint venture with Reliance Industries. However, talks with Reliance are not exclusive, and Tesla may consider another partner if these negotiations stall.

This development aligns with the Indian government’s new electric vehicle policy and tax incentives, aimed at making India a global hub for electric vehicle manufacturing.

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