Tesla Expected to Announce India Launch in 2024; Will Set Up Manufacturing Facility in Sanand: Reports

News Highlights

• About a year ago, high import duties on electric cars became an issue that made Tesla change its decision to invest in India.
• The EV manufacturer had previously stated that it is eager to establish a battery production facility in India.

India may see a Tesla launch as early as January of the following year. The largest car manufacturer in the world is reportedly considering a January 2024 announcement during the Vibrant Gujarat Summit, which will take place in Gandhinagar. The yearly international conference of investors interested in the state will mark its tenth edition at the summit. The CEO and creator of Tesla, Elon Musk, is probably going to show up to announce the EV manufacturer's arrival in India. The EV manufacturer is reportedly nearing the end of negotiations with the government to secure land on which to locate its manufacturing facility, according to reports from a number of state media outlets. 

After Prime Minister Narendra Modi met Elon Musk during his most recent visit to the US earlier this year, Tesla had previously made indications that it was reevaluating its plans to invest in India. About a year ago, high import duties on electric cars became an impediment for Tesla, the US-based electric vehicle manufacturer, and it changed the company's decision not to invest in India. Piyush Goyal, the Union Minister, recently paid a visit to one of Tesla's US facilities. 

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As per the reports released by Gujarat Samachar and other official media channels, Sanand is the likely location for Tesla's manufacturing facility. This is also where automakers like Tata Motors are located. Additionally, a few other Indian automakers, including Maruti Suzuki and MG Motor is also located in Gujarat. 

According to the reports, Tesla is anticipated to seal a Memorandum of Understanding at the Global Summit in Vibrant Gujarat. In addition to making electric vehicles, the EV manufacturer had previously stated that it is eager to establish a battery production facility in India. The automaker had also made hints that by the end of this year, it might decide on the location of its manufacturing facility in the nation. Other states like Karnataka, Maharashtra, Tamil Nadu, and Telangana have also been fighting for Tesla's investment. 

According to reports, Tesla is reportedly eyeing Gujarat for both land and port access so it can export its electric vehicles to other nations. The Gujarati port of Kandal-Mundra's proximity to Sanand and other areas may be advantageous to the EV manufacturer. The state government has allegedly offered lands in locations like Becharaji and Dholera, even though Sanand has not yet been chosen as the site for Tesla's planned India manufacturing plant. 

Because of the hefty import taxes, Tesla does not sell its electric cars in India. Musk did acknowledge, though, that India has great potential for battery and electric car technology. Tesla sells some of the best-selling electric vehicles in the world, including the Model S, Model Y, Model X, and Model 3.