SUMMARY
Since December 2023, the state has been actively focusing on major investment opportunities by global giant
As part of this effort, they are closely monitoring Tesla's proposed investment initiatives in India
Tesla Motors will be reportedly sending a team to the country later this month to scout locations for its first $2-$3 Bn factory
The Telangana government is in discussions with global electric vehicle manufacturing giant Tesla to set up its plant in the state, said Industries Minister D Sridhar Babu.
Babu took to X to say that since December 2023, the state has been actively focusing on major investment opportunities by global giants. As part of this effort, they are closely monitoring Tesla’s proposed investment initiatives in India.
“We have been making all our efforts to bring Tesla to Telangana for some time,” Babu said.
“Telangana with its Industry-friendly policy, is working with a progressive and futuristic vision by creating a world-class Infrastructure and hassle-free permissions system to enable best-in-class companies like Tesla to do business in Telangana,” he added.
Tesla Motors will be reportedly sending a team to the country later this month to scout locations for its first $2-$3 Bn factory.
According to a Financial Times report, the team from the US will be deployed across Maharashtra, Gujarat, and Tamil Nadu to identify potential sites for the manufacturing plant.
The development comes days after the centre approved a new policy under which EV companies would have to pay lower duty on imports of EVs if they agree to set up manufacturing facilities in the country.
Under the scheme, import duty on vehicles with cost, insurance and freight (CIF) value of $35,000 or above will be reduced to 15% for five years for companies which agree to invest at least INR 4,150 Cr (about $500 Mn) in India to set up manufacturing facilities.
Meanwhile, Tesla has reportedly commenced production of cars at its plant in Germany for export to India later this year.
The company has reportedly started the production of right-hand drive cars intended for the Indian market. While the company produces Model Y at its unit near Berlin, there was no clarity on which model Tesla plans to ship to India.
