American electric car giant Tesla Motors is gearing up to explore potential locations in India for a proposed $2-3 billion electric car plant.
The team from Tesla is slated to scout locations in various states across India, with a particular focus on regions boasting existing automotive hubs.
States such as Maharashtra and Gujarat in the west, and Tamil Nadu in the south, have been earmarked for consideration, according to the report.
This strategic move by Tesla follows closely on the heels of the Indian government's recent unveiling of a new electric vehicle (EV) policy. The policy, which was introduced last month, aims to reduce duties for a select number of EV imports, provided that companies commit to establishing manufacturing operations within the country within a three-year timeframe.
Tesla has been actively lobbying for tariff reductions as a precondition for investing in manufacturing operations in India, making the timing of its exploratory visit significant.
While Maharashtra, Gujarat, and Tamil Nadu are top contenders due to their existing automotive infrastructure, Tesla may also explore additional locations near the capital, Delhi, given the presence of automobile plants in neighboring Haryana.
However, the primary focus of Tesla's reconnaissance mission will be on states with ports, facilitating streamlined exports of cars manufactured in India.
According to sources, Tesla is considering an initial investment of $2-3 billion in the Indian car plant. Additionally, suppliers are expected to pour billions of dollars more into the project, making this one of the largest inward foreign investments in India.
The anticipated factory is set to have a significant production capacity, with estimates suggesting it could churn out as many as 500,000 cars annually once it reaches full operational capacity.
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