Tesla Accelerates Talks with India for EV Imports and Local Manufacturing Deal

Ira Singh
Khabar Khabaron Ki,22 Nov’23

Tesla, the pioneering electric vehicle (EV) manufacturer, appears to be on the cusp of striking a significant agreement with India, signaling a major leap into the country’s burgeoning automotive market. Recent reports suggest that Tesla is edging closer to finalizing a pact that encompasses both the importation of electric cars and the establishment of a local manufacturing facility.As part of the potential agreement, Tesla is expected to commit an initial minimum investment of approximately $2 billion for the plant, with plans to escalate purchases of auto parts from India to as much as $15 billion.

The government is close to finalising an agreement with Tesla that would allow the US automaker to import its electric vehicles to the country from next year, while also paving the way for a local factory in the next two years, according to reports.

An official announcement is anticipated at the Vibrant Gujarat Global Summit scheduled for January, with the states of Gujarat, Maharashtra, and Tamil Nadu being under consideration due to their well-established ecosystems for electric vehicles and exports, the report added.