Elon Musk’s Tesla might finally break ground in India by unveiling plans to establish an Electric Vehicle (EV) manufacturing hub in Gujarat during the forthcoming 'Vibrant Gujarat Global Summit.' Expectedly, the Tesla CEO and Prime Minister Narendra Modi will grace this event, slated for January 10-12, where the announcement could take place, reports suggest.
Gujarat, famed for its strategic positioning and business-friendly ambiance, emerges as Tesla's favored spot for this manufacturing endeavor.
As per insights from Ahmedabad Mirror, potential sites like Sanand, Becharaji, and Dholera have been proposed by the state government to house Tesla's manufacturing plant.
Initially, Gujarat, Maharashtra, and Tamil Nadu were under Tesla's consideration for their EV production facility.
Tesla has been deeply engaged in discussions with the Union Government, aiming for favorable concessions to facilitate its seamless entry into India's market.
Union Commerce Minister Piyush Goyal's visit to Tesla's advanced manufacturing unit in Fremont, California, back in November, further highlighted this dialogue.
Goyal expressed his delight, noting the contribution of skilled Indian professionals in key roles at Tesla and the increasing significance of Indian auto component suppliers within Tesla's EV supply chain. He mentioned Elon Musk's absence due to illness and wished him a swift recovery via a post on X.
In response, Musk conveyed his regret for missing the meeting due to his unwell condition and expressed eagerness to meet at a later date.
The meeting between Goyal and Musk, initially planned during the Minister’s US visit, was expected to follow Musk's prior meeting with Prime Minister Narendra Modi in June, where he expressed keen interest in substantial investments in India.
Earlier reports indicated Tesla's request for an initial tariff concession from the Indian Government, aiming to offset the high customs duties – 70% for cars under $40,000 and 100% for cars exceeding $40,000. This concession was a prerequisite for Tesla to establish its manufacturing plant in India, extending to all EV manufacturers.
Forecasts suggest India's EV market holds significant potential, projecting a revenue of over $100 billion with a potential penetration rate surpassing 40% by 2030.
This growth trajectory anticipates robust adoption, exceeding 45%, in the two-wheeler (2W) and three-wheeler (3W) categories, with four-wheelers (cars) expected to attain a penetration rate of over 20%. These insights stem from a recent report by Bain & Company and Blume Ventures.
(With Agency Inputs)
ALSO READ | Tesla Issues Warning: Owners Face $50k Penalty for Selling Cybertruck Within First Year
