Tesla Eyes Maharashtra For First EV Manufacturing Plant in India

New Delhi, Feb 19 (KNN) Tesla, led by Elon Musk, has initiated the process of identifying land for an electric vehicle (EV) manufacturing facility in India, with Maharashtra emerging as the frontrunner, according to a report by The Economic Times.

The U.S.-based EV giant has also reportedly approached executives at Tata Motors to explore potential collaboration opportunities.

Maharashtra has strategic advantages that make it an attractive choice for Tesla. The state is home to Pune, where Tesla already has an office and a network of suppliers.

Government officials have suggested potential sites in Chakan and Chikhali, both near Pune, which are prominent automotive hubs housing major manufacturers such as Mercedes-Benz, Tata Motors, Mahindra & Mahindra, Volkswagen, and Bajaj Auto.

However, Tesla is still evaluating multiple factors, with proximity to a port being a crucial consideration for streamlining exports. Maharashtra is keen to secure the project, especially after losing major investments like the Vedanta-Foxconn semiconductor plant and the Tata-Airbus aircraft project to other states.

Given the competitive landscape, Tesla may still opt for a different location based on economic and logistical viability.

Signalling its increased focus on India, Tesla recently posted job listings for 13 positions across sales, service, customer support, operations, and business development.

These positions are based in Mumbai and Delhi, suggesting the company is preparing to establish showrooms and service centres.

Additionally, Tesla has reached out to Tata Motors, a leader in India’s EV sector, hinting at possible collaboration. Prashanth Menon, who previously led Tesla’s India operations and was reassigned to the Netherlands in 2022, is expected to play a pivotal role in shaping the company’s India strategy upon his return.

Tesla’s India entry has faced hurdles, primarily due to high import duties. In 2021, the company shelved plans for a Mumbai showroom after the government refused to lower import taxes.

In 2023, Tesla resumed talks with Indian officials regarding local component sourcing and later leased office space in Pune.

The Indian government’s 2024 EV policy, which offers duty relief for companies investing at least USD 500 million, has rekindled Tesla’s interest.

Musk was anticipated to announce investments during an April 2024 visit to India but cancelled the trip, prioritising other business commitments and instead visiting China.

With India’s EV market expanding and policy frameworks evolving, Tesla remains eager to establish a local manufacturing base. However, the final decision will depend on negotiations with state governments and overall business feasibility.

(KNN Bureau)