Elon Musk's electric vehicle (EV) manufacturing company Tesla Inc. will build its car manufacturing plant in Gujarat. According to reports, the official announcement is expected to be made at the Vibrant Gujarat Global Summit in January 2024.
This news has come when the automotive company is in the final stage of the deal with the Indian government for its entry in the Indian market. According to a report in Ahmedabad Mirror, the announcement of the Tesla plant in Gujarat will take place in the presence of the company's CEO Elon Musk. India will allow this American EV company to import electric vehicles in the country from next year and set up a manufacturing plant within a period of two years.
According to the report, Gujarat's strategic location and business environment have made it a preferred location for Tesla's manufacturing plant. The state government has presented Sanand, Dholera and Becharaji as options for the location of the plant. Tesla aims to meet both domestic and international (re:export) demand from the Gujarat plant.
News about Tesla's plans for India has been going on for a long time. Many of these reports have revealed the American automaker's demand for concessions and reducing regulatory rules for Tesla's operation in the country.
Meanwhile, top government officials told Business Today last month that Tesla may be allowed to import fully built cars at concessional import duty of around 15-20%, which is applicable on such imports. Much less than the current 100%. This will depend on Tesla setting up a manufacturing plant in India. Officials had said that if Tesla fails to meet the condition, India will take steps to recover the entire duty benefit from the company
Indian EV manufacturers like 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. Other auto companies like Maruti Suzuki, Tata Motors and MG already have manufacturing plants in Gujarat.
Recently, Elon Musk had also said that he is planning to visit India next year. The report says that Tesla is planning to initially invest about $ 2 billion, i.e. about Rs 16,000 crore for the new plant in India. They also plan to buy auto parts worth up to 15 billion dollars, or about Rs 1.2 lakh crore, from India. The company is considering manufacturing some batteries in India to reduce costs.
Recently, Commerce and Industry Minister Piyush Goyal visited Tesla's manufacturing facility in California. However, company owner Elon Musk was not present during this period. He wrote in an X post- 'It is an honor to have you in Tesla! I am sorry for not being able to come to California today, but I look forward to meeting at a future date.
While sharing the photos, Piyush Goyal wrote on Goyal said- 'Missed the magnetic presence of Elon Musk and I wish for his speedy recovery.'
