In a significant development, electric car giant Tesla Inc is reportedly in discussions with Reliance Industries Ltd to establish an electric vehicle manufacturing unit in India. Sources suggest that Tesla has committed USD 2 billion towards its upcoming plans in the country, with potential locations under consideration including Gujarat and Maharashtra.
Elon Musk, CEO of Tesla, affirmed the company’s interest in the Indian market during a recent session with Nicolai Tangen, CEO of Norges Bank Investment Management. Musk emphasized the importance of India’s rapidly growing population and expressed the view that electric vehicles should be accessible to all, echoing Tesla’s commitment to sustainable transportation.
While talks between Tesla and Reliance Industries are still in their early stages, spanning over a month, there are expectations that the Indian conglomerate could play a significant role in establishing the manufacturing facility and supporting ecosystem for Tesla in India.
This development follows Reliance Industries’ recent strides in the electric vehicle space, including the launch of India’s first hydrogen internal combustion engine-powered heavy-duty truck in partnership with Ashok Leyland. Additionally, RIL introduced removable and swappable batteries for EVs last year, signaling its commitment to advancing sustainable mobility solutions.
Elon Musk’s interest in entering the Indian market aligns with the country’s growing middle class, which is increasingly inclined towards adopting new-energy vehicles. The Indian government’s recent decision to reduce import duties on EVs for foreign companies, provided they invest a minimum of 41.5 billion rupees and commence domestic production within three years, has further incentivized global firms to invest in India’s burgeoning electric vehicle sector.
The move to attract investment from international players is seen as a strategic step towards accelerating India’s transition to environmentally-friendly transportation options. As discussions progress between Tesla and Reliance Industries, anticipation mounts regarding the potential impact of this collaboration on India’s electric vehicle landscape and broader efforts towards sustainability in the automotive industry.
