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Electric vehicle giant Tesla nears deal for first Indian manufacturing plant in Gujarat

Northeast NewsbyNortheast News
December 30, 2023
in Business
Electric vehicle giant Tesla nears deal for first Indian manufacturing plant in Gujarat

A file image of PM Modi with Tesla boss Elon Musk during a meeting in New York. (Photo:x)

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Tesla, the world’s leading electronic vehicle manufacturer, is gearing up to make its foray into the Indian market with its first manufacturing plant in Gujarat.

Negotiations for this move are reportedly in the final stages and the official announcement is expected to be made during the upcoming Vibrant Gujarat Summit scheduled for January 2024, as reported by local press.

While neither Tesla nor the state government has made an official statement regarding this development, Gujarat Health Minister and government spokesperson Rushikesh Patel have expressed optimism about Elon Musk’s potential investment in the state.

During a recent Cabinet briefing, Minister Patel highlighted Gujarat’s alignment with Tesla’s overarching goals and awareness.

He confirmed ongoing discussions with the electric vehicle giant to finalise the deal for establishing the manufacturing plant in Gujarat.

The potential sites for Tesla’s manufacturing plant in Gujarat are speculated to include Sanand, Becharaji, and Dholera, as per a report in a local tabloid.

Gujarat’s appeal as a top choice for Tesla reportedly stems not only from favourable state government policies but also from its proximity to ports, facilitating efficient product exports.

The strategic locations being considered, such as Sanand, offer a short distance to the Kandla-Mundra port in Gujarat, potentially boosting Tesla’s exports from India.

Gujarat, a strategic hub for businesses, has long been an attractive location for various industries.

Notably, Tesla’s aspirations in India extend beyond electric cars.

The company aims to establish a battery manufacturing plant, complementing its vision for a sustainable and eco-friendly automotive ecosystem.

Despite challenges posed by high import duties, particularly impacting the sale of Tesla’s electric cars in India, Elon Musk recognises the country’s immense potential in the electric vehicle and battery technology landscape.

Renowned globally for its groundbreaking models such as the Model 3, Model S, Model Y, and Model X, Tesla’s impending entry into the Indian market signals a paradigm shift in the automobile sector.

Tags: Elon MuskGujarat Health Minister Rushikesh PatelTesla
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