New Delhi, Apr 12 (KNN) American electric vehicle giant Tesla is reportedly scouting locations in India to set up a massive manufacturing facility with an initial investment of USD 2-3 billion.

According to government officials, coastal states like Gujarat, Maharashtra, Telangana, and Tamil Nadu are competing to host Tesla's proposed plant.

Tesla CEO Elon Musk is expected to visit India later this month to meet with Prime Minister Narendra Modi and finalise plans.

The Indian government recently announced a liberal EV policy allowing global automakers to import a limited number of EVs at 15 per cent duty if they invest at least USD 500 million to manufacture locally.

The policy aims to boost EV adoption, promote Make in India, and reduce oil imports.

Tesla has begun producing right-hand drive vehicles at its Berlin factory for the Indian market. It plans to start selling EVs in India by the end of 2023 while simultaneously setting up a "mega manufacturing" plant to cater to the wider developing world.

India's large market, cost-effective manufacturing base, stable political regime, and EV-friendly policies have attracted multiple foreign automakers to invest

(KNN Bureau)