Tesla, Elon Musk's company, is actively searching for land in India to establish its first electric vehicle (EV) assembly plant. Several state governments are vying to attract Tesla to their regions, anticipating a revolution in India's EV sector with this ambitious project.
Tesla's India Entry: Where Will the First Plant Be Located?
Tesla plans to set up a "Completely Knocked Down" (CKD) assembly unit in India, marking its initial step towards local production. Under this plan, the company will import vehicles from Germany and assemble them in India, thereby benefiting from import duty reductions.
Business Standard
Which States Are in the Race?
1. Rajasthan: Emerging Auto Hub Near NCR
The Rajasthan government has offered Tesla land in Salarpur and Khushkhera industrial areas near Bhiwadi. These areas boast excellent connectivity to the Delhi-Jaipur Expressway and are already developed for the automobile industry. The state government's offer of a special incentive package makes this location a b contender.
2. Maharashtra: Near Pune, Tesla's First Choice?
The Maharashtra government has offered Tesla land in Chakan and Chikhli regions near Pune. These areas are known for automobile manufacturing, and many of Tesla's suppliers are also located here. However, no final decision has been made yet.
India Today
3. Gujarat: Elon Musk's Preference?
According to the Gujarat government, Elon Musk considers Gujarat a top choice for Tesla's plant. The state government is in communication with Tesla and offering land.
4. Andhra Pradesh: Port Connectivity Advantage
The Andhra Pradesh government has offered Tesla pre-acquired land in Nellore, Sri City, and Anantapur districts. These areas offer direct access to ports, beneficial for exports.
ETManufacturing.in
5. Karnataka: Hub for Technology and Innovation
The Karnataka government has invited Tesla to set up a plant in the state, highlighting Bengaluru as a center for technology and innovation.
Investment and Government Policies
The Indian government recently announced a new policy for EV manufacturers, offering incentives for local production. Under this policy, companies commencing production in India within three years will receive a 15% concessional customs duty on imports of high-value EVs.
Partnership with the Tata Group
Tesla has partnered with Tata Group companies to strengthen its supply chain in India. Companies like Tata AutoComp, Tata Technologies, TCS, and Tata Electronics are supplying various components and services to Tesla. This partnership is a significant step towards Tesla establishing production in India.
Meeting Between Elon Musk and Prime Minister Modi
In February 2025, Prime Minister Narendra Modi and Elon Musk met, discussing Tesla's potential investment plans in India. Following this meeting, Tesla initiated recruitment for various positions in India, highlighting the company's seriousness about its Indian venture. Tesla's plan to establish a plant in India is significant not only for the EV industry but also for India's economic growth, job creation, and technological advancement. While the final decision is pending, the competition among states and the government's incentive policies are positive indicators.
