India Revs Up Efforts to Lure Tesla: Andhra Pradesh Makes a Play for EV Gigafactory

2024-10-29

For years, rumors of Tesla entering the Indian market have swirled, with the possibility of both electric vehicle (EV) sales and a manufacturing plant. Now, an Indian minister’s recent meeting with a Tesla executive reignites speculation about the automaker’s plans.

Andhra Pradesh Makes a Pitch

Nara Lokesh, Minister of Human Resources Development for Andhra Pradesh, met with Tesla CFO Vaibhav Taneja at Gigafactory Texas. Lokesh highlighted the state’s commitment to clean energy, aiming for 72 gigawatts of renewable energy production by 2029. He proposed Anantapur district as a strategic location for a potential EV manufacturing and battery production facility.

Tesla’s History in India: A Tale of “Maybes”

Talks of Tesla’s Indian foray have been a long-running saga. The company previously sought reduced import duties for its EVs, aiming for a profitable entry point. Elon Musk even hinted at a possible factory after establishing success with imported vehicles. However, concrete plans haven’t materialized.

Missed Visits and Muted Talks

An anticipated visit by Musk in April was postponed due to Tesla commitments. This, coupled with his subsequent visit to China, raised concerns about India’s regulatory environment. Despite Musk’s social media post tagging Prime Minister Modi and expressing interest in “exciting work” in India, talks seem to have stalled this year.

Competition Heats Up: Other States in the Race

Previous reports suggested three other Indian states were frontrunners for a potential Tesla facility. Notably, Andhra Pradesh wasn’t on that list.

The Import Duty Hurdle: A Deal-Breaker?

Musk has previously emphasized import duty reduction as a key factor. Until an agreement is reached, significant progress on Tesla’s Indian presence seems unlikely.

What Undercode Says:

The recent meeting between Andhra Pradesh and Tesla reignites hope for the automaker’s Indian expansion. However, several hurdles remain. Tesla’s import duty demands and the competition from other states pose challenges. Until these issues are addressed, Indian consumers might have to wait a while longer for Teslas to hit the road.

References:

Initially Reported By: Teslarati.com
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