Tesla CEO Elon Musk expressed his belief that India, like all other nations, should embrace electric vehicles, asserting that it is a natural progression for his company to introduce Tesla electric vehicles in India. During a X Spaces session with Nicolai Tangen, CEO at Norges Bank Investment Management, Musk stated, “India should have electric cars just like every other country has electric cars. It’s a natural progression to provide Tesla electric vehicles in India.” He emphasized that in the future, all vehicles will transition to electric power, marking it as an inevitable evolution.
Tesla has recently stepped up its efforts to expand its presence in the Indian market and is actively seeking a suitable location to establish a cutting-edge manufacturing facility. According to sources, both the Maharashtra and Gujarat state governments have offered attractive land deals to Tesla Inc. for the construction of an electric vehicle (EV) manufacturing plant, marking significant progress in India’s electric mobility sector. The proposed plant, with an estimated investment ranging from USD 2 billion to USD 3 billion, aims to serve both domestic and international markets for Tesla’s electric vehicles.
This development aligns with India’s new EV policy, which incentivizes the establishment of manufacturing plants in the country. Tesla, as a global EV manufacturer, intends to establish a strong manufacturing presence in India. The policy aims to attract investments from reputable global EV manufacturers, promote the adoption of advanced EV technology among Indian consumers, and support the country’s Make in India initiative. It stipulates a minimum investment threshold and encourages significant levels of domestic value addition (DVA) in vehicle production.
As part of its investment plans, Tesla plans to send a team of experts to explore suitable locations across India for the proposed manufacturing facility. Additionally, the government is expected to formally invite applications for the EV tariff reduction scheme by the end of the month, allowing eligible companies to import a specified number of vehicles annually. Elon Musk had previously expressed his intention to visit India in 2024, following an invitation from Prime Minister Narendra Modi during his State visit to the US. In November 2023, Union Minister for Commerce and Industry Piyush Goyal visited Tesla’s manufacturing facility in California and highlighted the increasing role of Indian auto component suppliers in Tesla’s EV supply chain.