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Tesla, the electric vehicle (EV) manufacturing giant, has been making waves globally. Now, it seems India is on the radar for Tesla’s expansion plans. Elon Musk, the founder and CEO of Tesla, is scheduled to meet with Prime Minister Narendra Modi later this month. The purpose of this high-profile meeting is to discuss Tesla’s intentions to invest in India and establish a new factory in the country¹.

Tesla’s India Ambitions

1. Investment Plans

Elon Musk has affirmed Tesla’s interest in entering the Indian market. With India’s rapidly growing population and increasing awareness of environmental sustainability, the demand for electric vehicles is on the rise. Musk recognizes this potential and aims to tap into the Indian market. During his visit, he is expected to unveil detailed investment plans for Tesla in India¹.

2. Factory Location

Earlier reports hinted that Tesla officials would be scouting potential sites for a manufacturing plant in India. The establishment of such a facility is estimated to require an investment of approximately $2 billion to $3 billion. Gujarat and Maharashtra have emerged as potential locations for the plant. Maharashtra, in particular, appears to be the favored choice. Tesla is actively surveying these regions to finalize the best site for its factory¹.

3. India’s EV Policy

India’s government introduced a new Electric Vehicle (EV) policy in March 2024. The policy aims to promote India as a global manufacturing hub for EVs. Key highlights include:

• Minimum Investment: The policy requires a minimum investment of Rs 4,150 crore (approximately $560 million) with no maximum investment cap.
• Timeline: EV manufacturers must set up manufacturing facilities within three years, commence commercial production of EVs, and achieve 50% domestic value addition (DVA) within five years.
• Technology Access: The policy aims to provide Indian consumers with access to the latest EV technology.

Tesla’s entry into India aligns well with these policy objectives. By investing in the country, Tesla can contribute to the ‘Make in India’ initiative and strengthen the EV ecosystem¹.

Conclusion

Elon Musk’s meeting with PM Modi holds immense significance for India’s EV landscape. As Tesla gears up to unveil its investment plans, all eyes are on the potential factory location and the impact it will have on India’s automotive industry. With Musk’s vision and India’s commitment to sustainable mobility, the road ahead looks electrifying!