MUMBAI, India, Tuesday, April 16, 2024 – Tesla Inc. and Reliance Industries Limited (RIL) are reportedly in talks to establish a joint venture for an electric vehicle (EV) manufacturing plant in India, according to a report in The Business Standard. 1
The potential collaboration could involve a $2 billion investment from Tesla. Maharashtra and Gujarat are emerging as frontrunners for the plant’s location, with Maharashtra seemingly the preferred choice due to its existing automotive infrastructure and proximity to ports.
Tesla CEO Elon Musk publicly confirmed the company’s intention to enter the Indian market as a “natural progression” during a recent X (formerly Twitter) Spaces session.
High-level Tesla representatives are expected to visit India soon to finalize the plant’s location and potentially solidify the joint venture with RIL.
However, if discussions with RIL fall through, Tesla may explore partnerships with other Indian companies.
This development aligns with the Indian government’s recently approved Electric Vehicle (EV) policy, announced in March 2024.
The policy aims to position India as a global leader in EV production. It provides incentives for foreign EV manufacturers, including minimum investment thresholds, relaxed import duties, and timelines for establishing manufacturing facilities.
However, it should be noted that India rejected Chinese EV maker BYD recently for a similar JV.
- business-standard.com: https://www.business-standard.com/companies/news/tesla-reliance-may-join-hands-for-ev-manufacturing-plant-in-india-report-124041000098_1.html[↩]
