Reportedly, Tesla is scouting for a local partner to set up its operations in India.
Highly placed sources say the US electric vehicles major in talks with none other than Reliance Industries for a possible joint venture to build the manufacturing facility in the country.
A source informs that the discussions have been ongoing for more than a month at the initial stages and the initiative should not be interpreted as RIL’s foray into the automotive sector. The objective of RIL in the joint venture is stated to be the development of the electric vehicle capabilities in India.
Another source says that although RIL’s specific role has not been finalized, it is anticipated that the Indian conglomerate will likely have substantial involvement in setting up the manufacturing facility and the associated ecosystem for Tesla in India.
On April 9 Elon Musk, Tesla CEO had said it will be a natural progression for Tesla to provide electric vehicles in India. Musk’s statement came amid reports about Tesla scouting for a location to set up its factory in India.
What does the Tesla CEO has to say?
“India is now the most populous country in the world, based on population. India should have electric cars just like every other country has electric cars. It’s a natural progression to provide Tesla electric vehicles in India,” Musk said in a X (previously Twitter) Spaces session with Nicolai Tangen, CEO of Norges Bank Investment Management.
Tesla in advanced talks with Reliance for EV manufacturing venture in India: Report
Elon Musk’s Tesla likely to seek JV with Reliance for India EV manufacturing: Report
Tesla has reportedly earmarked $2 billion for its India plans
Tesla Motors is reportedly in discussions with… pic.twitter.com/za7NVZx7UR
— Tesla Pablo 🔋 (@pablo9948967714) April 10, 2024
According to reports, sources indicated that Maharashtra and Gujrat have presentd attractive land proposals to Tesla Inc. for the setup of an electric vehicle (EV) manufacturing facility. Additionally, discussions with the Telangana government are reportedly underway for a similar arrangement with the EV giant.
The proposed facility, which will draw an investment of approximately $2 billion to $3 billion, seeks to address the demand for Tesla’s electric vehicles both within India and abroad.
Reportedly, the company has commenced the production of right-hand drive vehicles at its facility in Germany. These cars are intended for export to India later this year, signaling Tesla’s progress toward potential entry into the world’s third-largest automotive market. Additionally, it has also been reported that a delegation from Tesla is expected to visit India later in April to assess potential locations for establishing a domestic car manufacturing facility.
The Indian government earlier this year had announced a new EV policy that offered lower import duties for EVs, paving the way for automakers such as Tesla to come to the country.
In 2023, Reliance had collaborated with Ashok Leyland to introduce India’s inaugural heavy-duty truck powered by a hydrogen internal combustion engine. Additionally, RIL revealed removable and swappable batteries for electric vehicles the previous year.
India’s electric vehicle (EV) market, although modest in size, is experiencing steady growth and is currently led by domestic automaker Tata Motors. Electric models accounted for 2% of total car sales in 2023, yet the government aims to increase this figure to 30% by 2030.
In January, VinFast, a Vietnamese competitor to Tesla, announced plans to invest $2 billion in India and initiated the construction of an EV factory in Tamil Nadu state.