Tesla is actively looking for land in India to establish an electric vehicle (EV) manufacturing plant, with Maharashtra emerging as the top contender. According to a report by The Economic Times, the company is assessing potential locations and engaging in discussions with state officials.
Maharashtra’s Strategic Advantage
Tesla’s preference for Maharashtra is linked to its existing presence in Pune, where it has an office. The state is home to many of Tesla’s suppliers, making it a convenient choice for expansion. The Maharashtra government has reportedly proposed sites in Chakan and Chikhali, both near Pune, which is a major auto manufacturing hub housing companies like Mercedes-Benz, Tata Motors, Mahindra & Mahindra, Volkswagen, and Bajaj Auto.
Ongoing Discussions
While Maharashtra is a strong candidate, negotiations are still in progress, and no final agreement has been reached. Tesla is also considering factors like proximity to ports before making a decision. Given the competition among states, the final location of the plant remains uncertain.
Job Postings Indicate Expansion
Following Elon Musk’s meeting with Prime Minister Narendra Modi, Tesla listed job openings for 13 positions in Mumbai and Delhi. These roles span vehicle service, sales, customer support, and operations, hinting at the possibility of Tesla opening showrooms in India ahead of setting up a plant.
Exploring Local Partnerships
Tesla has reportedly reached out to leading Indian EV manufacturers, including Tata Motors, to explore potential partnerships and local component sourcing. Senior Tesla executive Prashanth Menon, who previously led the company’s India operations, has returned to the country to oversee the expansion efforts.
Delayed Entry into India
Musk has long expressed interest in entering the Indian market. In 2021, Tesla planned to open a showroom and office in Mumbai’s Lower Parel but faced hurdles due to high import duties. Tesla had proposed reducing taxes on imported EVs to assess demand before committing to local manufacturing, but the Indian government declined, insisting on local production first.
Policy Changes and Future Plans
In 2024, the Indian government introduced a new EV policy, offering duty concessions for companies investing at least $500 million in local manufacturing—an effort seen as a move to attract Tesla. Musk was expected to visit India in April 2024 to announce investment plans but canceled at the last minute due to company obligations, later traveling to China instead. Despite past setbacks, Tesla’s renewed activities indicate that its India entry is gaining momentum.
