DELHI (Diya TV) — Tesla Motors is set to send a team from the United States to scout locations in India later this month for a proposed $2-$3 billion electric car manufacturing plant, according to sources familiar with the company’s plans.
The move marks a significant step towards Tesla’s entry into the Indian market, following New Delhi’s recent decision to lower tariffs on higher-priced imported electric vehicles for companies willing to commit to domestic manufacturing within three years.
Tesla’s scouting team will focus on states with established automotive hubs, including Maharashtra, Gujarat, and Tamil Nadu, where existing infrastructure could support the company’s manufacturing operations. While some automakers have plants in Haryana state near New Delhi, Tesla’s primary focus is on states with ports, facilitating easier export of cars.
Although Tesla has not officially commented on its plans, sources reveal that the company aims to make a substantial investment of $2-$3 billion in the Indian car plant. This investment is expected to be one of India’s largest inward foreign investments, potentially creating thousands of jobs and boosting the local economy.
If confirmed, Tesla’s investment would be a significant win for Prime Minister Narendra Modi’s government, which has been actively promoting manufacturing in critical industries like electric vehicles. Modi has been personally involved in discussions with Tesla CEO Elon Musk, urging the company to invest in India during his visit to the US last year.
Tesla’s entry into the Indian market could potentially revolutionize the country’s electric vehicle industry, which is currently dominated by domestic carmaker Tata Motors. With EVs accounting for only about 2% of total car sales in India in 2023, the government aims to increase this share to 30% by 2030, presenting significant growth opportunities for companies like Tesla.
While India’s EV market is still in its nascent stages, Tesla’s presence could spur more investments in the sector and benefit local auto parts manufacturers. The company’s proposed electric car, priced at around $24,000, could cater to the growing demand for affordable EVs in India and other emerging markets.
