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Tesla Eyeing Reliance For $2 Bn Indian Manufacturing Plant

Updated: Apr 10, 2024 02:16:29pm

Tesla Eyeing Reliance For $2 Bn Indian Manufacturing Plant

New Delhi, Apr 10 (KNN) In a major move to establish its presence in the growing Indian market, Tesla, the American electric vehicle (EV) giant, is reportedly considering a joint venture with Reliance Industries Limited (RIL) to set up a manufacturing facility in the country.

Tesla has allocated USD 2 billion for its forthcoming ventures in India and has been scouting potential locations, including Gujarat and Maharashtra, to host the plant, reported BL.

Notably, Maharashtra is emerging as the frontrunner for the proposed facility.

During a recent Twitter Spaces session, Elon Musk, Tesla's CEO, confirmed the company's plans to enter the Indian market, emphasising the country's status as the most populous nation in the world and the importance of providing electric vehicles to every country.

“India is now the most populous country in the world. 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.

According to sources, senior Tesla officials are expected to visit India within the next month to finalise the location for the plant and potentially solidify a joint venture with RIL. However, if the negotiations with RIL fail to materialise, Tesla may explore partnership opportunities with other domestic companies.

The report comes on the heels of the Indian government's recent approval of an Electric Vehicle (EV) policy aimed at promoting the country as a global manufacturing hub for EVs. The policy mandates a minimum investment of Rs 4,150 crore (approximately USD 500 million) with no maximum investment cap, designed to attract investments from reputable global EV manufacturers.

Under the new policy, companies must establish manufacturing facilities in India, commence commercial production of EVs, and achieve 50 per cent domestic value addition within five years. Additionally, the policy stipulates a three-year timeline for setting up operations and caps the duty on the total number of EVs permitted for import at the investment made or Rs 6,484 crore, whichever is lower.

As India transitions towards a greener and more sustainable future, the potential entry of Tesla, a pioneer in the EV industry, could be a significant milestone in the country's efforts to promote electric mobility and reduce its carbon footprint.

(KNN Bureau)


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