Elon Musk Eyes India EV Expansion, Says Tesla Car Launch Would Be 'Natural Progression'

Musk's Tesla has been actively exploring potential locations for a state-of-the-art manufacturing facility in its quest to tap into the Indian market.

Tesla's proposed investment and manufacturing plans in India could potentially revolutionise the country's EV landscape. ( Image Source :X/@cb_doge )

In a strategic move to expand its global footprint, Tesla Inc., led by visionary CEO Elon Musk, has set its sights on India, signalling a significant pivot towards electric vehicle (EV) manufacturing and distribution in the country. During a recent discussion on X Spaces with Norges Bank Investment Management CEO Nicolai Tangen, Musk underscored India's pivotal role in Tesla's expansion strategy, highlighting the country's burgeoning population and the inevitable shift towards electric vehicles globally.

"India is now the most populous country in the world, based on population. India should have electric cars just like every other country has electric cars. It's a natural progression to provide Tesla electric vehicles in India," Musk stated, emphasising the global trend towards electrification of transport. He further predicted a future where electric vehicles dominate the roads, marking a significant shift from traditional combustion engines.

Eye On India

In its quest to tap into the Indian market, Tesla has been actively exploring potential locations for a state-of-the-art manufacturing facility, with Maharashtra and Gujarat states reportedly in the running to host Tesla's next big venture. Insider sources suggest that the investment could range from $2 to $3 billion, aiming to serve both the domestic and international markets with Tesla's cutting-edge electric vehicles.

This initiative aligns with India's ambitious EV policy, which aims to attract major global players in the EV industry. The policy outlines incentives for establishing manufacturing bases in India, including a favourable customs duty regime and mandates for domestic sourcing of vehicle components, reflecting India's push for self-reliance and technological advancement in the automotive sector.

Revolutionise India's EV Landscape

Tesla's proposed investment and manufacturing plans in India could potentially revolutionise the country's EV landscape, in line with the government's objectives to foster advanced EV technology adoption and boost the 'Make in India' initiative. The policy stipulates significant domestic value addition over time, ensuring that Tesla's foray into India would not only introduce cutting-edge technology but also stimulate the local automotive industry.

Moreover, in a move that underscores the reciprocal interest between Tesla and the Indian government, Musk hinted at an upcoming visit to India in 2024, following an encouraging meeting with Prime Minister Narendra Modi in New York. Modi's invitation to Musk is seen as a pivotal moment in India's efforts to attract foreign investment in the EV sector.

Additionally, Union Minister for Commerce and Industry, Piyush Goyal's recent visit to Tesla's facility in Fremont, California, highlighted the growing synergies between Indian auto component suppliers and the global EV manufacturer. Goyal's visit emphasised the mutual benefits of Tesla's expansion into India, not only for the company but also for the burgeoning Indian auto components industry.

As Tesla prepares to make a landmark entry into the Indian market, the anticipation builds over the potential impacts on the country's automotive landscape and its position in the global EV manufacturing arena.