Maharashtra is in talks with Tesla for land to set up an EV plant, as the company seeks to expand its presence in India
The Indian version of an electric vehicle manufacturing plant is on the cards for Tesla and the company is evaluating land options, Maharashtra is one of the frontrunners. Elon Musk’s meeting with Prime Minister Narendra Modi in the US may have piqued the company’s interest in the state. Tesla is reportedly negotiating with officials of the state so that it may establish itself in the country. It seems to be Maharashtra, others are also vying for the project.
Maharashtra’s Appeal to Tesla
However, compared to areas like Pune, in Maharashtra which already has an office of Tesla, other cities do not have infrastructure in place. Production is also facilitated by the fact that the company’s suppliers are also in the state. But Tesla is reportedly keen on land near Pune’s Chakan, and Chikhali areas. Chakan, a significant automotive hub, houses companies such as Mercedes-Benz, Tata Motors, and Mahindra & Mahindra.
On the discussions with Tesla, the Maharashtra officials are being cautious. State leaders are more careful in negotiations following past losses of major investment projects like the Vedanta-Foxconn semiconductor plant. Before taking that plunge, Tesla is thought to be looking at how close its potential factory would be to ports and in general how logistically feasible it would be.
Job Openings Signal Tesla’s Growing Interest
Multiple job openings in India were also released by Tesla, which shows much focus of the company on the Indian market. The roles located in Mumbai and Delhi are spread across different departments such as vehicle service, sales, and business operations. The company’s effort to hire staff indicates its plans to expand and launch a plant in India.
The experts think that Tesla could start selling cars in major cities before finalizing the manufacturing setup. It is also reported that Tesla is talking to industry leaders like Tata Motors executives to work on partnerships or local sourcing options. This suggests that the company is strategically expanding its marketplace in India.
A Long Road to Local Manufacturing
Challenges over import duties have been the biggest reason for the delays in Tesla’s India entry. However, the company faced hurdles with the Indian government and was planning to open a showroom and office in Mumbai in 2021. Tesla had asked for lower import duties on EVs priced under $40,000, but the government refused the request. Rather, the Indian government stressed to Tesla that it must build in India and create local manufacturing.
