New Delhi: According to Reuters, Minister of Electronics and Information Technology Rajeev Chandrasekhar has confirmed that Tesla is seriously considering establishing a manufacturing base in India. Recently, top executives from the electric vehicle company visited India to meet with government officials and discuss the potential setup of manufacturing operations in the country.
During their meetings, Tesla officials also engaged in conversations about incentives for car and battery manufacturing with Indian authorities. Minister Chandrasekhar stated, “They [Tesla] are very seriously looking at India as a production and innovation base.” This marks the first official comment made by an Indian government representative regarding the talks. He further expressed the government’s commitment to supporting Tesla’s ambitions and investment objectives in India, assuring them of their cooperation and dedication to their success.
As per the report, Tesla’s senior executives proposed the establishment of a factory to manufacture electric vehicles in India. Additionally, they expressed interest in manufacturing EV batteries within the country. When asked if their discussions extended beyond car manufacturing, Minister Chandrasekhar responded by highlighting the broader scope of the conversation. He mentioned that topics such as energy, manufacturing technology, and other potential areas of collaboration were also explored. However, he refrained from speculating on Tesla’s specific plans in India, stating that it was not his place to do so.
Interestingly, Tesla has encountered challenges in China due to geopolitical tensions. India has emerged as a viable alternative for the company, both as a market and a manufacturing destination. Apple recently demonstrated its confidence in India by opening two retail stores and expanding its production capabilities in the country, aiming to reduce its reliance on China.
Tesla had been in discussions with the Indian government to negotiate lower import taxes on cars, which can reach up to 100 percent. However, the talks reached an impasse as the government emphasized the importance of Tesla manufacturing cars locally, while the automaker expressed a desire to first test the demand by exporting vehicles to India.
Apart from its manufacturing plants in the United States, Tesla currently operates a major factory in Shanghai, which is the largest globally, as well as one in Brandenburg, Germany. With its interest in India, Tesla aims to further expand its global manufacturing footprint and tap into the country’s growing market potential.
