Back in June, Tesla CEO Elon Musk was reported as saying that a significant investment and relationship with India was in the works, and there were plans to execute this “as fast as humanly possible.” That may be just around the corner, with no less than an assembly plant in the country in the works, according to the Ahmedabad Mirror.
The news publication says that Tesla is expected to set up a manufacturing plant in Gujarat, with an official announcement likely at the Vibrant Gujarat Summit in January. The report added that the EV automaker has chosen the state due to its conducive business environment, with the state government presenting Sanand, Becharaji and Dholera as location options for its plant.
The state is already home to a number of manufacturing plants from various automakers, including Maruti Suzuki, Tata and Morris Garage.
The report added that Tesla has already been engaged in negotiations with the central government and was seeking concessions that would facilitate a smoother entry into the Indian market. The demands for concessions were part of the broader discussions around easing regulatory hurdles and ensuring a conducive business environment for Tesla’s operations in the country, the news publication said.
Earlier this year, Musk said Tesla would be picking a location for the next Tesla Gigafactory by the end of 2023, and locations that were speculated included India as well as Indonesia. The brand already has five Gigafactory locations in operation (Nevada, New York, Shanghai, Berlin and Texas), with a sixth being announced for Mexico. An Indian factory would be the American EV maker’s seventh such plant.
The overtures have been long in the making. Back in 2021, the company registered a company in India, and there were initial reports that sales of Tesla cars were to begin that year, but plans didn’t work out. It was said that Tesla wanted tax cuts for CBU imports because it didn’t have a plant in India, but the government would not budge. This of course will no longer be an issue if Tesla starts producing cars in India.
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