Tesla is in search of prospective land in India to setup EV plant

According to individuals familiar with the matter, Tesla, the prominent electric vehicle company, is preparing to dispatch a delegation to India in order to explore potential sites for an electric car manufacturing facility worth an estimated $2 billion to $3 billion. The Financial Times reported this development, noting that the decision comes in the wake of New Delhi's recent decision to lower tariffs on imported electric vehicles (EVs) with higher price tags, provided that these companies commit to establishing domestic production capabilities within a three-year timeframe.

According to the report of FT, the scouting team is expected to reach India from the United States in late April. Their main objective will be to concentrate on states that have well-established automotive hubs, including Maharashtra, Gujarat, and Tamil Nadu. Additionally, they may also consider Haryana, which is located near New Delhi.

However, the report suggests that the team's focus is primarily on states with port facilities, as this would enable smoother car exports.Tesla's investment, if verified, has the potential to strengthen Prime Minister Narendra Modi's administration as India nears its parliamentary elections.

Prime Minister Modi had previously encouraged Tesla CEO Elon Musk to consider investing in India when they met in the US last year.

After meeting the Prime Minister Narendra Modi Musk stated," He wants to be open, he wants to be supportive of new companies and make sure it accrues to India's advantage. Which is, obviously, that's the job.”

In January, it was reported that Tesla was engaged in extensive negotiations to penetrate the Indian market and potentially allocate approximately $30 billion in investments within the upcoming five years. Additionally, Tesla might consider establishing a battery manufacturing facility in India, similar to its existing "gigafactory" concept implemented in California, Texas, Berlin, and Shanghai.

According to an individual with insider knowledge and active participation in project discussions, this could potentially mark a significant turning point for India's electric vehicle (EV) industry, comparable to the impact Suzuki had on the country's automotive sector. 

Furthermore, it could also serve as a transformative moment, similar to Apple's influence, for India's manufacturing ambitions. In order to bridge the divide with China, India has allocated significant subsidies to strengthen its manufacturing sector, with a particular focus on key areas such as EVs.