Elon Musk’s Tesla Likely To Set Up Its First India Manufacturing Plant In Gujarat

Electric vehicle (EV) manufacturing giant Tesla is likely to enter India with its manufacturing plant in Gujarat next year, as per multiple media reports.

The EV maker’s negotiation for the establishment of its first manufacturing unit in India is in the final stage and is likely to conclude soon.

Meanwhile, as per a report by Ahmedabad Mirror, the announcement regarding Tesla’s manufacturing unit in the state is anticipated to be made during the forthcoming Vibrant Gujarat Summit scheduled for next month.

Gujarat is already home to manufacturing units of automakers like Maruti Suzuki, etc and it is anticipated that for Tesla’s manufacturing plant possible location could be Sanand, Becharaji and Dholera.

However, so far, there has been no official announcement by the EV maker or the state government on the matter. 

During a recent Cabinet briefing, Gujarat Health Minister Rushikesh Patel expressed optimism about Elon Musk’s investment in Gujarat. 

He highlighted the state’s awareness and alignment with Tesla’s overarching goals, drawing a parallel during the address.

Patel also emphasised that the government is actively in talks with the EV maker to finalise the deal on establishing the manufacturing plant in Gujarat.  

Media reports also suggest that Gujarat has become a prime choice for Tesla’s manufacturing plant, not only due to favourable state policies but also its proximity to ports, facilitating product exports. The strategic location, particularly in Sanand, offers a short distance to the Kandla-Mundra port in Gujarat, enhancing Tesla’s export capabilities from India.

The vibrant Gujarat Global Summit was conceptualised in 2003. The tenth edition of the Vibrant Gujarat Summit will celebrate “20 years of Vibrant Gujarat as the Summit of Success”. The summit is dedicated to business networking, knowledge sharing, and fostering strategic partnerships for inclusive growth and sustainable development.

In August, Union Minister of Commerce and Industry, Piyush Goyal, reportedly met with senior Tesla executives in a closed-door meeting to discuss the carmaker’s plans to establish a manufacturing plant in the country.

Earlier, Tesla expressed interest in building a factory in India that would produce a low-cost electric vehicle (EV) priced at around $24,000 (INR 19.87 Lakhs), around 25% cheaper than Tesla’s current entry model for both the Indian market and export.

Tesla is working overtime on its plans to enter India, with multiple meetings taking place between the government and the carmaker’s executives since mid-May. Earlier, it was also reported that the carmaker has leased office space in Pune.

Tesla has leased an office spread over a 5,850 sq ft. area on the first floor of Panchsil Business Park in Viman Nagar, Pune.

Tesla also wants to bring some of its Chinese vendors to India but has been asked by Indian officials to copy Apple’s playbook in the country and ask its Chinese suppliers to set up joint ventures with Indian partners to get clearance.