Tesla India Plant Could Be Set Up In Gujarat - Report

Electric carmaker Tesla could set up its India plant in Gujarat, with recent reports suggesting that the plant could be announced at the upcoming Vibrant Gujarat Summit. Tesla CEO Elon Musk is set to be in attendance at the event. Rumours have been rife of Tesla’s official arrival in India with a manufacturing facility in the works. As per PTI, Gujarat Minister Rushikesh Patel said that the state government was in communication with Tesla and was “very hopeful” the carmaker would select the state as the site for its India plant.

Given the proximity of the port in Gujarat, the location fits well with Tesla’s export plans should it open a plant in India. Several states have been competing to get Tesla in their respective backyard. Notably, Maharashtra, Tamil Nadu and Gujarat were said to be in consideration, given the existing automotive ecosystems in these states for electric vehicles and exports.

The EV maker’s arrival in India has been highly-awaited with plans oscillating between full imports and local assembly. However, the company doesn’t want to fully import cars in India due to high tariff levels and the government rejected giving a subsidy to the carmaker on import duty for EVs.

Tesla previously was willing to invest up to $2 billion in setting up a plant in India if the government provided a concessional duty of 15 per cent on imported vehicles during its first two years of operations in India, according to reports. The company was expected to localise up to 20 per cent of the value of made-in-India cars in two years and would increase to around 40 per cent in four years.

Should Tesla finally make its way to India, the company is likely to commence operations with the sale of the Model 3 and Model Y first, before bringing the Model S and Cybertruck. More details are likely to unfold at the Vibrant Gujarat Summit next month.