Tesla In Talks With Reliance To Set Up EV Plant In India: Report (Photo by Austin Ramsey on Unsplash)Elon Musk-owned Tesla is reportedly in discussion with Mukesh Ambani’s Reliance Industries to set up an electric vehicle (EV) manufacturing facility in India. Hindu BusinessLine, citing sources, reported on April 9 that the talks are in the preliminary stages and Tesla’s management may visit the country soon.
This significant move indicates that the renowned automaker is looking for a local partner to establish its operations in the country. The source, aware of the matter, told Hindu BusinessLine that the discussions between Tesla and Reliance have been ongoing for over a month.
Notably, the source also reportedly said that this development should not be regarded as the entry of Reliance into the automobile space. Instead, with this joint venture, the Indian conglomerate is hoping to build capacity for electric vehicles in the country. For establishing the plant, the company is looking at various locations, including Maharashtra and Gujarat, according to the source. “Tesla plans to use the facility for domestic and export purposes, and hence, it may prefer a location suitable for port facilities,” said the source to Hindu BusinessLine.
Another source said that Reliance may play a “significant hand” in establishing the manufacturing facility in India. In February 2023, Reliance Industries and Ashok Leyland unveiled the country’s first Hydrogen Internal Combustion Engine (H2-ICE) powered Heavy Duty truck.
Earlier this month, the Financial Times reported that Tesla will send a team this month to scout locations in India for a proposed $2 billion to $3 billion facility for EVs. Recently, the central government announced a major reduction in import taxes on a specified number of EVs. This move is expected to pave the way for the entry of renowned automakers, including Tesla. In June 2023, Elon Musk met with Prime Minister Narendra Modi in the United States. Following this meeting, the Tesla CEO said that the carmaker will be in India “as soon as humanly possible.”