Tesla Electric Cars To Be Made In India: Details
The American electric vehicle manufacturing giant Tesla Inc. is currently making headlines as it has started hiring for various roles for its dealerships in India. Well, it has now been reported that the company is also looking to set up a manufacturing facility in India to locally produce its electric cars. What’s even more interesting is that Tesla has reportedly also started having discussions with the current Indian electric vehicle segment leader, Tata Motors, for a strategic partnership to build cars.
Tesla to make cars in India
As per the sources, billionaire Elon Musk-led Tesla Inc. has already started identifying land for setting up its manufacturing plant in India. It has been stated that Tesla wants to set up its production plant in the state of Maharashtra. For those who may not be aware, recently, Elon Musk met Prime Minister Narendra Modi in the USA.
During this meeting, discussions on Tesla’s entry into India were held between the billionaire and the Prime Minister. According to reports, Elon Musk also requested Prime Minister Modi to help with the lowering of import duties on electric vehicles and also for the government’s support in establishing a manufacturing plant in India.
Tesla wants to set up its plant in Maharashtra
Tesla has started its search for land to set up its first manufacturing plant in the state of Maharashtra. Now, the main reason why the American EV maker wants to set up a plant in Maharashtra is due to its already existing presence in Pune. For those who may not be aware, Tesla already has an office and a supply chain network in Pune.
Additionally, Pune and its nearby areas have now transformed into an automotive hub. Locations like Chakan and Chikhali both have the presence of major automakers such as Tata Motors, Mahindra Automotive, Mercedes-Benz, Volkswagen, and Bajaj Auto. Also, another major reason to choose Maharashtra is its proximity to a port.
Tesla is planning to make its Indian manufacturing plant a hub for exports to international markets. Tesla aims to reduce its dependency on China, where it currently has its biggest manufacturing plant, the Gigafactory. It is located in Shanghai and has a capacity of building 7,50,000 cars in a year.
Lastly, Tesla could also be given an incentive by the Maharashtra government, as it has recently lost a few major investments, including Vedanta-Foxconn’s semiconductor plant and Tata-Airbus’s aircraft project. It has to be noted that presently, Tesla has not signed any MOU with the government of Maharashtra to set up its plant in the state.
Tesla could also partner with Tata Motors
As stated in the beginning, Tesla Inc. is reportedly also having discussions with Tata Motors to collaborate for manufacturing support. Tata Motors, which is currently the largest electric four-wheeler manufacturer in India, could provide Tesla with help in setting up a production plant in India. It could also help the company with the supply chain and component sourcing as well.
In addition to these, Tata Motors could also help Tesla with EV charging infrastructure. Lastly, they could also work together on the development of new battery technology to beat the Chinese automotive giant BYD, which has recently overtaken Tesla to become the largest electric automaker in the world.
Now, whether Tata Motors and Tesla Inc. do set up a manufacturing plant together or help each other has not been confirmed. However, if this partnership turns into reality, both automakers could help each other in beating rival brands Mahindra, Hyundai, and Maruti Suzuki, which have already launched new electric SUVs in India.