The southern state of Tamil Nadu in India is aggressively courting Tesla Inc., ahead of CEO Elon Musk’s anticipated visit, in a strategic move to position itself as a prime destination for electric vehicle (EV) manufacturing. T.R.B. Rajaa, Tamil Nadu’s Minister for Industries, expressed the state’s readiness to seize opportunities in EV manufacturing from global car majors, emphasizing its status as India’s leading automotive hub with the best policies and ecosystem for electric vehicles.
Tesla’s interest in establishing a manufacturing presence in India has been the subject of speculation for some time. With Prime Minister Narendra Modi seeking reelection and aiming to boost investment and job creation, attracting Tesla would not only enhance Modi’s credentials but also showcase Tamil Nadu as a business-friendly state.
Chennai, Tamil Nadu’s capital, emerges as a frontrunner in Tesla’s considerations, given its existing manufacturing facilities for major automotive companies like Nissan, Renault, Hyundai, and BMW, along with robust auto parts supply chains. However, Tamil Nadu faces stiff competition from other Indian states vying for Musk’s attention.
While Tesla has yet to make a definitive commitment, the potential establishment of an EV plant aligns with India’s ambitious goals of decarbonizing its economy and achieving net-zero emissions by 2070. As the world’s third-largest emitter of greenhouse gases and with a burgeoning population, India represents a promising market for Tesla amid stagnating EV sales in China and the US.
Notably, India recently reduced import duties on EVs and introduced tax concessions for foreign companies investing a minimum of Rs 4,150 crore ($500 million) and commencing local production within three years. Tamil Nadu, already renowned as the automotive capital of India, now aims to solidify its position as the EV capital as well.
“Tamil Nadu is already the automotive capital of the country,” stated Minister Rajaa, highlighting the state’s readiness to embrace the EV revolution. With a conducive business environment, skilled workforce, and government support, Tamil Nadu stands poised to attract Tesla and spearhead India’s transition to electric mobility.
