Tesla has been showcasing a ardent interest into setting up a manufacturing plant in India. As per recent reports it has become apparent that the brand would soon be setting up a base in India, specifically in Maharashtra. Beyond that there have also been reports of how Tesla might join hands with Tata for a prospective partnership to produce EV cars and other EV ancillaries. 

 The recent meeting of Elon Musk with Narendra Modi at  the Whitehouse has led to the fast paced setup initiation from Tesla. 

Maharashtra To Be The New Production Hub 

As per the new reports Tesla would probably choose Maharashtra as their base for all manufacturing plans. Companies like Mahindra, Bajaj. Tata and Mercedes Benz have already set their bases in Maharashtra. Pune had been the go to choice for Tesla before as well, when it had first planned to enter India in 2023, so its not a new thing that the brand has chosen Maharashtra as their base again.  

Elon’s Previous Investment Plans For India

Elon Musk had profound plans to invest as well as bring Tesla to India. But at the end Elon decided to use the existing factories to build new and more affordable vehicles.

The decision came after Tesla had previously indicated the plans to introduce its affordable Model 2 vehicle in India. The vehicle was supposedly to be priced around 25,000$’s and cater to the mass market. Elon musk had spoken about plans to meet Minister Narendra Modi and announce investments in a auto factory in India. The said meeting was seemingly cancelled last minute. The reason became the heavy obligations that were being levied on Tesla. Beyond the investment in India Elon has also stepped back from an investment plan in Mexico.

Elon had taken the decision considering the risks that such investments involved. A strategic shift to mitigate risks associated with new models manufacturing processes.

Indian Government Rules For EV Manufacturing India

Indian government has planned a incentive system for manufacturing battery components in India. Manufacturers are required to invest in the auto part manufacturing in India to gain incentives from government in India. The government has introduced new schemes such as FAME 2 and Pm E drive as well as phased manufacturing programmed for better localization of EV part manufacturing.

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