In Short:
Tesla is looking for a partner to set up operations in India, with talks ongoing with Reliance Industries for a possible joint venture to build a manufacturing facility. RIL’s objective is to build capacities for electric vehicles in India. Tesla has committed $2 billion for its plans in India, with Maharashtra potentially being the preferred location. The company plans to use the facility for domestic and export purposes.
Tesla in Talks with Reliance Industries for Joint Venture in India
Exciting news alert! It seems like Tesla is considering teaming up with Reliance Industries to establish its operations in India. Sources reveal that discussions have been ongoing for over a month now, with the aim of setting up a manufacturing facility in the country.
RIL to Enter the Electric Vehicle Space?
Hold your horses! This potential partnership doesn’t necessarily mean that Reliance Industries is venturing into the automobile industry. Instead, the focus is on enhancing electric vehicle capacities in India through this joint venture.
The specifics of RIL’s role are still being ironed out, but it is expected that the conglomerate will play a significant part in establishing the manufacturing facility and related ecosystem for Tesla in India.
In 2023, RIL and Ashok Leyland introduced India’s first hydrogen internal combustion engine-powered heavy-duty truck. Additionally, RIL unveiled removable and swappable batteries for electric vehicles last year.
Tesla’s Big Plans for India
Tesla has reportedly allocated $2 billion for its upcoming ventures in India. The company has been exploring various locations, with Maharashtra emerging as a potential front-runner for the manufacturing plant.
The plan is to use the facility for both domestic consumption and exports, making a port facility a desirable feature for the chosen location.
In a recent chat with Nicolai Tangen, CEO of Norges Bank Investment Management, Elon Musk affirmed Tesla’s entry into India, stating that the country’s growing population warrants the presence of electric cars.
Scouting for Partners
Exciting developments await as senior officials from Tesla are expected to visit India soon to finalize the plant location and solidify the joint venture with RIL. Despite ongoing talks with RIL, Tesla remains open to exploring partnerships with other domestic entities.
With the government’s recent approval of the new electric vehicles scheme and tax reliefs, India is poised to become a global hub for electric vehicle manufacturing.
