Elon Musk-led global electric vehicle (EV) major Tesla, is potentially seeking a local partner for its proposed entry into the Indian market, and is reportedly considering the prospect of a joint venture with the Indian conglomerate Reliance.
The proposed joint venture, if materialised, will be to set up a manufacturing facility in India, The Hindu Businessline (HBL) reported.
Tesla has reportedly earmarked $2 billion for its India plans, and has been scouting various locations, including Gujarat and Maharashtra, as potential sites for the plant.
Maharashtra is purportedly emerging as the favoured choice, the report said.
Senior Tesla officials are expected to visit India within the next month to finalise the location for the plant and solidify a joint venture with RIL.
The HBL report, however, said the discussions with RIL are not exclusive, and Tesla might seek another domestic partner if ongoing negotiations fail to materialize.
Musk, CEO of Tesla, recently confirmed Tesla’s entry into India during an X (formerly Twitter) Spaces session alongside Nicolai Tangen, CEO of Norges Bank Investment Management.
“India is now the most populous country in the world. India should have electric cars just like every other country has electric cars. It’s a natural progression to provide Tesla electric vehicles in India,” Musk said.
Tesla’s reported moves to finalize its entry plans followed India unveiling its Electric Vehicle (EV) policy, stipulating a $500 million minimum investment and a three-year timeline for establishing manufacturing facilities in India.
The policy stipulations, which also include achieving 50 percent domestic value addition (DVA) within five years at maximum, apparently aimed at attracting investments from reputable global EV manufacturers.
The policy also specifies that the duty on the total number of EVs permitted for import would be capped at the investment made or Rs 64.84 billion.
Additionally, it states that a maximum of 40,000 EVs, with an annual cap of no more than 8,000 vehicles, would be allowed if the investment amounts to $800 million or higher.
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