Tesla Reportedly Plans to Begin Electric Car Assembly in India

The anticipation surrounding Tesla's foray into the Indian market is gaining momentum, as the renowned electric vehicle giant is said to have expressed keen interest in establishing a manufacturing facility within the country. As per the latest reports, Tesla aims to assemble electric cars locally and establish a domestic network of suppliers. In an endeavour to streamline its production and distribution processes, Tesla plans to integrate its manufacturing and supply chain operations prior to a potential launch in India.

Presently, Tesla relies on its vendor network in China, which stands as the company's largest market beyond its home turf. Should Tesla proceed with manufacturing operations in India, it will necessitate the relocation of its existing vendors to cater to the new facility.

In a significant development, Tesla executives held a two-day meeting with Indian officials in Delhi back in May to deliberate on the subject. Sources indicate that the renowned electric vehicle manufacturer put forth a proposal to establish its manufacturing facility in India, with a focus on securing local components. This move is seen as an effort by Tesla to diversify its manufacturing base beyond China.

Elon Musk, the charismatic CEO of Tesla, revealed that the company is poised to finalize the location of its new factory by the end of this year. He further hinted at the possibility of India being the chosen destination, expressing his interest in establishing a business presence in the country. The proposed Tesla GigaFactory in India is expected to serve as a hub for manufacturing electric cars locally, with plans for exporting vehicles to Asia and other markets.

According to Union Minister Rajeev Chandrasekhar, there are strong indications that Tesla is seriously considering India as a potential production and innovation hub, as reported by Reuters. However, reports suggest that during the recent meeting between Tesla executives and government officials, the company refrained from making a firm commitment to establishing a factory in India.

Previous discussions between Tesla and the Indian government reached an impasse due to the government's refusal to entertain the EV manufacturer's request for a reduction in import duties. 

Instead, the government advised Tesla to establish a local manufacturing facility in order to sell electric vehicles in India. Union Minister Nitin Gadkari stated that Tesla would be welcomed in India if it opted to manufacture EVs locally rather than importing them from China.