Tesla may set up manufacturing plant in Gujarat; announcement likely in Vibrant Gujarat Summit: Report

Tesla is reportedly likely to establish its car manufacturing plant in Gujarat, the announcement for which is expected in the Vibrant Gujarat Summit in January 2024. This comes as the automotive company continues its discussions with the Indian government for its entry into the Indian market. 

According to a report in Ahmedabad Mirror, the announcement of the Tesla plant in Gujarat is likely to be made in the presence of Tesla CEO Elon Musk. 

As per the report Gujarat’s strategic location and business environment has made it into Tesla’s preferred destination for its manufacturing plant. The state government has reportedly offered Sanand, Dholera and Becharaji as choices for the location of the plant. Tesla aims to cater to both domestic and international (re: export) demands from the Gujarat plant. 

Reports about Tesla’s plans for India have been rife for a while, with many revealing the US automaker’s demands for concessions and the easing of regulatory hurdles conducive for Tesla’s operations in the country. 

Meanwhile, top government functionaries had told Business Today last month that Tesla might be allowed to import fully-built cars at a concessional import duty of around 15-20 per cent, which is much lower than the current 100 per cent on such imports.

Nevertheless, this would be contingent upon Tesla setting up a manufacturing plant in India. If Tesla fails to fulfill the condition, then India would move to recover the entire duty benefits from the company, the officials had said.

Indian EV manufacturers such as Tata Motors and M&M pointed out that they are already manufacturing automobiles and electric vehicles in India and questioned why Tesla should be given any special treatment.

Gujarat already has other manufacturing facilities of other automakers such as Maruti Suzuki, Tata Motors, and MG. 

Also read: BT Exclusive: India mulls lowering import duty to drive in Tesla cars, say govt sources