As Tesla gears up to mark its entry into the Indian market, state governments are vying to secure the opportunity to host the electric vehicle giant’s manufacturing plant. Gujarat emerges as the frontrunner in this race, closely followed by Tamil Nadu, Telangana, and Maharashtra, each making compelling pitches to lure Tesla’s investment.
Government sources reveal that Gujarat has taken the lead in the quest to secure the Tesla project. However, other states such as Tamil Nadu, Telangana, and Maharashtra are not far behind, intensifying efforts to attract the industrial giant. Maharashtra particularly focuses on Pune’s industrial belt as a prime location for Tesla’s operations.
This fervent competition among states stems from a recent report by Financial Times, indicating Tesla’s plans to send a team to India to scout potential sites for its proposed $2-3 billion electric vehicle plant. With the Indian government’s recent reduction in import duties on electric vehicles and the release of a comprehensive policy to boost EV manufacturing, the ball is now in Tesla’s court to formalize its investment plans for India.
Rajesh Kumar Singh, the secretary of the department for promotion of industry and internal trade, emphasizes that Tesla must announce its manufacturing plans, following which the government will facilitate the necessary arrangements at the state level. The government has already engaged in discussions with various state governments to streamline the process.
While Vietnam’s VinFast has already commenced its EV manufacturing venture in Tamil Nadu, Tesla’s potential investment remains a significant focus for India’s EV sector. Tesla’s proposed investment includes not only the establishment of a manufacturing plant but also an increase in auto parts purchases from India, potentially amounting to $15 billion.
The Indian government’s EV policy aims to incentivize investment by offering tax concessions to companies committing to substantial investments in local manufacturing. The policy targets a significant penetration of electric vehicles in the Indian market, projecting a share of 10% to 15% by 2030.
Telangana, under the leadership of Industries Minister D Sridhar Babu, is actively pursuing a partnership with Tesla for the establishment of an electric car manufacturing plant within the state. Minister Babu underscores Telangana’s commitment to providing a conducive environment for Tesla’s expansion, citing the state’s industry-friendly policies and progressive vision.
As states compete to attract Tesla’s investment, India’s electric vehicle sector stands poised for significant growth, driven by both domestic and international players. The race to secure Tesla’s manufacturing plant reflects India’s emergence as a key player in the global electric vehicle market, with states actively vying to capitalize on this transformative opportunity.
