Indian government closing in on agreement with Elon Musk's Tesla, announcement likely in January
Tesla Inc. that would allow the US automaker to ship its electric cars to the country from next year and set up a factory within two years, according to people familiar with the Indian government’s thinking. An announcement could come at the Vibrant Gujarat Global Summit in January, one of the people said, declining to be identified because the discussions are private.
The states of Gujarat, which is Prime Minister Narendra Modi’s home base, Maharashtra and Tamil Nadu are under consideration because they already have well-established ecosystems for electric vehicles and exports, another person said. Tesla would commit an initial minimum investment in any plant of around $2 billion, one person said, and would look to increase purchases of auto parts from the nation to as much as $15 billion. The US automaker would also seek to make some batteries in India to bring down costs, the person said.
No final decision has been made and the plans could change, the people said. Tesla Chief Executive Officer Elon Musk said in June that Tesla plans to make a “significant investment" in India and he intends to visit in 2024. Representatives from India’s Ministry of Heavy Industries, which oversees the automobile sector, and the ministries of finance, and commerce and industry, didn’t respond to requests for comment.
Tesla also didn’t respond to a request for comment. Breaking into the world’s most-populous nation, where demand for electric vehicles is growing among aspirational middle-class consumers, would be a boon for Tesla, which currently has factories in the US, China and Germany. Modi’s government has been pushing to increase domestic manufacturing of EVs and encourage a more rapid adoption of cleaner transport.
Read more on livemint.com
