Tesla looking to explore sites in India for setting up $2-3 billion EV plant: Report

Tesla to set up $2-3 billion plant in India soon

New Delhi, April 3 (IANS) – Tesla is planning to establish a $2-3 billion plant in India after the government approved a new electric vehicle (EV) policy to attract global manufacturers. According to The Financial Times, a team from the US will visit the country this month to explore potential locations for the plant.

The team will be focusing on states like Maharashtra, Gujarat, and Tamil Nadu, which already have EV infrastructure in place, as well as ports for easier car exports. Tesla has not yet officially confirmed this development.

With the reduced customs duty of 15 per cent, as per the new EV policy, Elon Musk’s entry into the Indian market seems more feasible. Prime Minister Narendra Modi has previously met Musk in the US and invited him to explore investment opportunities in electric mobility and the commercial space sector.

The government’s new EV scheme requires a minimum investment of Rs 4,150 crore (about $500 million) for setting up manufacturing facilities. Production is expected to begin within three years, with 25 per cent DVA within that time frame and 50 per cent DVA within 5 years at the maximum.