Tesla would enter the Indian auto market with the likely launch of Model 3 electric sedan slated later this year
Tesla has already established its entity in India with its India headquarters based in Bengaluru, Karnataka. It has also decided to set up shops in three different cities of the country- Mumbai, New Delhi and Bengaluru. The electric car manufacturer is currently scouting for a place where it could establish the company’s first assembly line.
While it has been reported that Karnataka, Maharashtra and Gujarat are all keen to welcome the American brand with open arms, the Gujarat Government has meanwhile offered 1000 acres of land to Tesla to build its local production facility. The company is presently scrutinizing all available options.
Tesla Playing Out All Options
According to a senior Gujarat government official, Tesla is undecided whether to opt for Gujarat or dig deep in Karnataka. The official quoted, “There is little or no social life in Gujarat, while it is not so in Bengaluru. They are trying to negotiate with both Gujarat and Karnataka governments.” The American EV brand officially set its foot in India on January 8, 2021, when it registered itself as Tesla India Motors and Energy Private Limited in Bengaluru.
The recent further discloses that the Maharashtra Government has also offered a piece of land in the state for the purpose of building its local plant. However, talks didn’t materialize ever since.
It has come to light that Tesla officials wanted a big web of charging stations in the Mumbai Metropolitan Region as well as near the Jawaharlal Nehru Port Trust, the port where the cars will land following imports. Tesla has partnered with 27 vendors in India out of which 20 are said to belong from Maharashtra.
Since their last interaction in 2020, Tesla hasn’t responded to the Maharashtra Government. Earlier, Karnataka Chief Minister had proclaimed that the carmaker will set up its factory and R&D facility in his state shortly after it registered itself with the Registrar of Companies with a Bengaluru address. However, the Karnataka CM later deleted that tweet that contained this information.
Gujarat Likely Host
Meanwhile, Gujarat has offered land both inside and outside Adani Ports and Special Economic Zone (APSEZ) in Mundra. APSEZ has an area of 8,400 hectares out of which around half is lying vacant. SEZs are designated duty-free enclaves where the Indian customs law does not apply. What also holds in favour of Gujarat is its new EV policy introduced a few days ago that not only offers subsidies on purchase of EVs but also provides setting up of necessary charging infrastructure.
Additionally, land in Gujarat is far cheaper than that in Karnataka. Reports claim that the Gujarat government is looking to build an electric vehicle hub in Mundra and, therefore, has also proposed to allocate land for ancillary units that would assist Tesla. This would include land for an EV battery manufacturing unit as well as other component manufacturers.
SOURCE
Source: Electric - rushlane.com
