Tesla Scouts India for $2-3 Billion EV Plant Sites
The Narendra Modi-led government's recent approval of a new electric vehicle (EV) policy has spurred interest from global manufacturers, notably Tesla. The policy aims to attract investments in the EV sector, offering incentives such as reduced customs duty to 15% with certain conditions. This move has encouraged Tesla to explore establishing a $2-3 billion plant in India.
Reportedly, Tesla is dispatching a team from the US later this month to survey potential locations for the plant. States like Maharashtra, Gujarat, and Tamil Nadu, which boast existing EV infrastructure and convenient access to ports for exporting vehicles, are among the areas of interest.
While Tesla has not officially commented on the matter, the company's potential entry into the Indian market aligns with Prime Minister Modi's previous discussions with CEO Elon Musk. During their meeting in the US last year, PM Modi lauded Musk's efforts in technology accessibility and affordability and invited Tesla to explore investment opportunities in India, particularly in electric mobility.
The new EV policy outlines requirements for manufacturers, including a minimum investment of Rs 4,150 crore (approximately $500 million) for setting up manufacturing facilities. Production must commence within three years, with a domestic value addition (DVA) of 25% within three years and 50% within five years.
Tesla's interest in establishing a manufacturing presence in India underscores the country's growing significance in the global EV market and signals potential advancements in electric mobility within the region.