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Tesla to set up its first Indian factory in Gujarat, announcement likely during Vibrant Gujarat event in January 2024

Gujarat Health Minister and government spokesperson Rushikesh Patel said that the government is actively in talks with the electric car maker to finalise the deal on establishing the manufacturing plant in Gujarat.  

Tesla is finally coming to India. According to reports, Elon Musk’s electric car manufacturing company may announce its debut in India in January 2024 during the Vibrant Gujarat Summit scheduled to be held in Gandhinagar. The upcoming summit is the 10th edition of the annual global gathering of investors who want to take advantage of Gujarat’s pro-business policies.

Reports suggest that Elon Musk, founder and CEO of Tesla, is expected to participate in the summit. Local reports indicate the company is in the final stage of negotiations with the government for the manufacturing unit land.

Gujarat Health Minister and government spokesperson Rushikesh Patel said that the government is actively in talks with the electric car maker to finalise the deal on establishing the manufacturing plant in Gujarat.  

As per Gujarat Samachar, Tesla may establish a manufacturing unit in Sanand. Tata Motors already has a manufacturing unit in Sanand. Tata Motors has also acquired the Ford’s plant in Sanand after the American car maker exited India. Maruti Suzuki, MG Motor, JCB, Honda two-wheelers and Hero MotoCorp also have manufacturing units in Gujarat.

A memorandum of understanding between the Gujarat government and Tesla may be signed during the Vibrant Gujarat Global Summit. Earlier, Tesla also hinted that it is interested in establishing a battery manufacturing unit in India apart from a car manufacturing unit.

Several other states, including Maharashtra, Karnataka, Telangana and Tamil Nadu, have their eyes on Tesla’s investments in the country. Gujarat’s favouring environment for Tesla is not only because of the land access but also access to ports to export the cars to other countries. Apart from Sanand, Becharaji and Dholera are also under consideration, according to the media reports.

During Prime Minister Narendra Modi’s recent visit to the United States, he met Elon Musk. At that time, Tesla hinted that the company was reconsidering its investment plans in India. So far, the high import duties in India have remained a deal breaker for the company. Tesla wanted to enter the Indian market by introducing cars made in the Shanghai Gigafactory in China, but the Indian govt wanted the company should start its Indian business with locally made cars. This led to a halt on the company’s plan to enter the Indian market. However, it seems the company has now changed its position of not investing in India.

Furthermore, Union Minister Piyush Goyal also visited Tesla facilities during his recent visit to the US. Following his meeting with PM Modi, Musk spoke about his leadership role in making technology inclusive so that digital infrastructure can be created, he said, “I can say he really wants to do the right thing for India. He wants to be open, he wants to be supportive of new companies, obviously, but at the same time, make sure it accrues to India’s advantage, which is obviously that’s the job I’m saying. I am a fan of Modi,” to ANI. In response to PM Modi’s tweet regarding his meeting with business leaders in the US, Musk tweeted, “It was an honour to meet again.”

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