First Major Step In US EV Manufacturer To Come To India?

For a very long time, we have been hearing that Elon Musk’s electric car manufacturing company Tesla would enter the Indian market. But that did not happen due to various reasons. India is a big market given the massive size of the automobile industry. There are already a few global companies here.

Now it is said that a major step has been made for Tesla to come to India for the business. The media reports say that Tesla will soon send a team to identify a suitable place to set up the plant. The team is expected to visit a few states and then take a call.

If we have to take anything from the reports, the Tesla team might come to India this month. The team would leave from the US. Tesla might focus on Maharashtra, Gujarat, and Tamil Nadu where there are automotive hubs already. It is also said that the plants might be worth $2 billion to $3 billion.

It is said that the main aim of setting up a plant here is to manufacture the vehicles here and export them to other places. If everything goes well then Tesla might also have a battery plant in India.

Earlier it was reported that Tesla wanted to come to the Indian market but it is not interested in manufacturing and exports. But the Indian government is said to be adamant on this and said no to the proposal. With both sides not coming to a common opinion, there was no progress in this.

Earlier last year Indian Prime Minister Narendra Modi met Elon Musk in the US. After the meetings, Elon Musk said that Tesla would be in India soon. Cut to a few months it is being reported that Tesla would send a team from the US to look for the land.

It has to be mentioned here that earlier the Indian government announced a new policy that would encourage EV automakers to come to India. If the companies are ready to invest $500 million in three years then they can import vehicles and the import duty will also be brought down.