In ongoing discussions with the Indian government about establishing a manufacturing plant, Tesla, the electric vehicle giant, is reportedly willing to invest around $30 billion in India over the next five years.
Insiders shared with Hindustan Times that Tesla is in advanced talks to enter the Indian market, with a focus on utilizing the funds to set up a manufacturing facility, a battery ecosystem, and associated industries.
The plan for Tesla in India might involve an initial investment of $3 billion to establish a unit dedicated to producing small cars for the developing world. Additionally, a separate investment of $15 billion could be allocated to the battery ecosystem over the next five years. Sources also mentioned the possibility of a $10 billion commitment from Tesla’s partners to support the manufacturing plans.
Elon Musk’s company is actively exploring four major auto manufacturing hubs in India as potential locations for the facility: Haryana, Tamil Nadu, Maharashtra, and Gujarat.
While a plant in Haryana could cater to the significant car market in Delhi NCR, insiders suggest that Tesla might prefer a coastal state in the west or south, considering its export aspirations.
The report also indicates Tesla’s confidence in building the entire factory from the ground up within three years of entering the Indian market, with the first car rolling out in just two years.
This development aligns with reports that the Indian government is contemplating reducing import duties for up to five years to attract global electric vehicle manufacturers to produce in India.