According to government sources speaking to Business Today TV, billionaire Elon Musk’s renowned company has officially proposed establishing manufacturing operations in India. This long-awaited move by Tesla, the world’s leading electric car manufacturer, has been confirmed by government insiders. The proposal includes plans to construct a gigafactory capable of producing approximately 500,000 electric vehicles annually.
Tesla’s objective in India is to introduce a diverse range of electric vehicles while simultaneously developing a robust charging infrastructure on a large scale. Moreover, the company aims to offer electric vehicles at an affordable price range, although specific pricing details have yet to be finalized.
If Tesla’s plans proceed as intended, the company will become India’s third-largest car manufacturer, following Maruti and Hyundai. Tesla and Indian government officials will engage in further discussions to address localization plans, including the identification of a suitable location for the gigafactory.
In addition, the Indian government may contemplate implementing a second phase of the Production Linked Incentive scheme to provide support for Tesla. There are ongoing discussions within the industry regarding the expansion of the FAME 3 (Faster Adoption and Manufacturing of Electric Vehicles) scheme, as the FAME 2 scheme is scheduled to conclude in March 2024.
These discussions initially arose in late 2021 when Tesla officials visited the Ministry of Road Transport and Highways and met with Giridhar Aramane, who was the ministry’s secretary at the time. Following the meeting, Aramane even had the opportunity to test drive Tesla vehicles. In May 2023, Tesla officials held further meetings with representatives from Niti Aayog, the Ministry of Heavy Industries, the Ministry of Road Transport and Highways, and other government bodies to advance the manufacturing plans.