Tesla is reportedly keen on three states in India if it ever decides to build a manufacturing unit in the country, as Maharashtra, Tamil Nadu, and Gujarat have been listed as frontrunners for the EV maker.
Despite years of speculation, Tesla has not yet confirmed that it had plans to expand its manufacturing presence to India.
The two parties have been working to get a deal done that would bring Tesla’s EVs to the country without hefty import duties, but delays and reluctance have taken center stage.
However, a new report from Business Standard in India states the automaker is now mulling three potential Indian states for its manufacturing hub:
“Amid reports that Tesla’s investment plans in India have been put on the backburner, sources close to the development indicate that three states — Maharashtra, Tamil Nadu, and Gujarat — are frontrunners for the global major’s manufacturing unit in India. A decision in this regard is likely to depend on the product portfolio of the electric carmaker, say industry sources. The company is also in talks to rope in local partners.”
Each state would be favorable for a specific business operation, the report states.
Maharashtra would be key for Tesla if it chooses to build and focus on a low-cost model for the domestic market. This has been a location that has been mentioned in the past, as Industries Minister Subhash Desai said in 2021 that Tesla was looking to establish some kind of presence there.
Tesla in talks with Maharashtra Industry Minister for India production plant
Meanwhile, Tamil Nadu would be more favorable if Tesla’s focus lands on exporting vehicles as the region has a well-established automotive ecosystem and is also close to ports. Tamil Nadu is the southernmost state in India and would be the most ideal location to ship vehicles from.
Finally, Gujarat would be an option only if subsidies would help offset logistics costs.
Tesla has not confirmed anything in terms of its plans. In fact, it recently put the Giga Mexico plant on the backburner as CEO Elon Musk said it would wait to see the outcome of the U.S. Presidential Election as former President Donald Trump would tariff vehicles sent from Mexico into the U.S.
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