Tesla set to establish Indian manufacturing plant in Gujarat, announcement expected at vibrant summit

Anticipated move aligns with Tesla’s low-cost EV plans, Gujarat’s strategic location and policies attract investment.

Tesla, the prominent electric vehicle (EV) manufacturing giant, is poised to make its foray into the Indian market with the establishment of a manufacturing plant in Gujarat next year, according to reports. Negotiations for the initiation of Tesla’s inaugural manufacturing unit in India are in the final stages and are anticipated to conclude shortly. The official announcement regarding Tesla’s manufacturing unit in the state is expected to be made during the upcoming Vibrant Gujarat Summit scheduled for the next month.

Gujarat, which already hosts manufacturing units of renowned automakers like Maruti Suzuki, is considered a potential location for Tesla’s manufacturing plant, with Sanand, Becharaji, and Dholera being likely choices. Despite widespread speculation, neither the EV maker nor the state government has issued an official statement on the matter. During a recent Cabinet briefing, Gujarat Health Minister Rushikesh Patel expressed optimism about Elon Musk’s investment in the state, highlighting the alignment of Gujarat’s goals with Tesla’s overarching objectives.

Patel emphasised ongoing discussions between the government and the EV manufacturer to finalise the deal for establishing the manufacturing plant in Gujarat. Media reports suggest that Gujarat’s attractiveness for Tesla’s manufacturing plant stems not only from favorable state policies but also from its proximity to ports, facilitating product exports. The strategic location, particularly in Sanand, offers a short distance to the Kandla-Mundra port in Gujarat, enhancing Tesla’s export capabilities from India.

The upcoming Vibrant Gujarat Global Summit, conceptualized in 2003, is expected to host the announcement of Tesla’s manufacturing unit in the state. The tenth edition of the summit, celebrating “20 years of Vibrant Gujarat as the Summit of Success,” is dedicated to business networking, knowledge sharing, and fostering strategic partnerships for inclusive growth and sustainable development.

In August, Union Minister of Commerce and Industry, Piyush Goyal, reportedly engaged in a closed-door meeting with senior Tesla executives to discuss the carmaker’s plans to establish a manufacturing plant in India. Tesla had previously expressed interest in building a factory in India focused on producing a low-cost electric vehicle priced at approximately $24,000 (INR 19.87 Lakhs), making it 25 percent cheaper than Tesla’s current entry model for both the Indian market and export.

Tesla’s efforts to enter the Indian market have been evident since mid-May, with multiple meetings taking place between the government and the carmaker’s executives. Earlier reports also indicated that Tesla secured office space in Pune, leasing a 5,850 sq ft area on the first floor of Panchsil Business Park in Viman Nagar.