Tesla Eyes Gujarat for First India Manufacturing Plant

Tesla, the electric vehicle (EV) manufacturing giant, is on the verge of making a significant stride in the Indian market by establishing its first local manufacturing plant in Gujarat. The much-anticipated announcement is expected to take place during the Vibrant Gujarat Summit in January 2024, with Tesla CEO Elon Musk likely to be in attendance. Gujarat's strategic advantages, including a favorable business environment and a strategic location, have positioned it as the preferred destination for Tesla's manufacturing endeavors.

The state government has proposed multiple locations, such as Sanand, Dholera, and Becharaji, as potential sites for the Tesla plant, aligning with the company's goal of meeting both domestic and international demands.

Speculation regarding Tesla's entry into the Indian market has been circulating for some time, with ongoing discussions between the company and the Indian government on concessions and regulatory considerations. While the official government stance is against providing subsidies on EV imports, recent reports suggest that Tesla may be granted the ability to import fully-built cars at a concessional import duty of 15-20%, a significant reduction from the current 100% duty on such imports. However, this concession is contingent on Tesla establishing a manufacturing presence in India, emphasizing the importance of meeting this condition for duty benefits.