PM Modi’s resolve expected to bring Tesla to Indian roads soon as company searches for factory location
In a significant development for the Indian automotive industry, Tesla, the electric car giant, is finally considering setting up a plant in India. Prime Minister Narendra Modi’s persistent efforts have paid off, as Tesla CEO Elon Musk is sending a team of experts to scout for a possible location in the country.
Reports indicate that Gujarat, Maharashtra, and Tamil Nadu are the top considerations for Musk, as they already have an EV infrastructure in place and ports that make it easier for exporting cars. PM Modi’s invitation to Musk to explore opportunities in India for investments in the electric mobility sector seems to have borne fruit.
Last November, Union Minister Piyush Goyal visited Tesla’s manufacturing facility in California and praised the contribution of talented Indian engineers and finance professionals to the company’s success. The government has also announced a new EV policy to reduce customs duty to 15 per cent, paving the way for Tesla’s entry into the Indian market.
In Musk’s own words, “He (PM Modi) really cares about India because he’s pushing us to make significant investments in India.” India’s EV market has the potential to achieve over 40 per cent penetration with $100 billion in revenue by 2030, driven by strong adoption in two-wheeler and three-wheeler categories.
The government’s initiatives like the FAME scheme and efforts to build EV charging infrastructure are further incentivizing EV adoption. With the prospect of Tesla setting up a plant in India, the electric vehicle market in the country is poised for significant growth in the coming years.
