Apr 12, 2024
Elon Musk’s Tesla, the renowned electric vehicle (EV) manufacturer, is reportedly in talks with Indian conglomerate Reliance Industries for a possible joint venture.
This move signals Tesla's growing interest in the Indian market, the world's most populous country.
Sources close to the development suggest discussions are in their initial stages, having continued for over a month. While the specific role of Mukesh Ambani's Reliance remains undefined, they're expected to play a crucial part in establishing a manufacturing facility and the supporting ecosystem for Tesla in India.
This wouldn't necessarily mark Reliance's entry into the automobile sector, but rather a strategic move to bolster India's EV manufacturing capabilities.
Tesla has earmarked a significant investment of $2 billion for its Indian venture. They've also been scouting locations for a potential manufacturing plant, with Gujarat and Maharashtra emerging as frontrunners. Maharashtra seems to be the more likely choice due to its proximity to port facilities, which would be ideal for catering to both domestic demand and exports.
This development follows a recent statement by Tesla CEO Musk, emphasising India's growing importance. He highlighted the country's population size and the increasing need for electric vehicles, suggesting Tesla's entry into the Indian market is a natural progression.
Senior Tesla officials are expected to visit India soon to finalise the plant location and potentially solidify the partnership with Reliance. This visit could pave the way for Tesla's official entry into the Indian market, potentially revolutionizing the country's EV landscape.
