Maharashtra Frontrunner for Tesla’s Factory in India, Car Sales Could Begin in 3 Months
Electric vehicle giant Tesla is making significant strides toward establishing its manufacturing presence in India, with Maharashtra emerging as the top contender for its new facility. According to a report by The Economic Times on February 19, Tesla has identified Maharashtra as a prime location due to its existing office in Pune and a robust network of suppliers in the state. The state government has reportedly offered sites near Chakan and Chikhali, both of which are strategically close to Pune, a major auto manufacturing hub housing industry giants like Mercedes-Benz, Tata Motors, and Volkswagen.
Tesla’s push into India gained momentum after Prime Minister Narendra Modi met CEO Elon Musk during his US visit in 2023. The meeting signaled a renewed focus on India’s growing electric vehicle (EV) market, which, while still nascent compared to China’s, presents a lucrative opportunity for Tesla to counter slowing global sales. India’s EV sales reached nearly 100,000 units last year, a stark contrast to China’s 11 million, but the country’s recent reduction in import duties on high-end cars (from 110% to 70% for vehicles priced above $40,000) has made the market more accessible.
In a parallel development, Tesla has started looking for talent from the automobile industry to fill key positions as part of its India expansion. The company has advertised 14 roles, including customer-facing and back-end jobs, based in Mumbai and Pune, on its LinkedIn page and India website, as reported by PuneNow. This move underscores Tesla’s commitment to building a strong local team to support its operations.
Meanwhile, CNBC-TV18 has revealed that Tesla could begin selling its vehicles in India within the next three months, initially importing cars from its Berlin plant. The company is also exploring the possibility of introducing an affordable EV priced under $25,000 to cater to the Indian market.
Tesla’s entry into India has been long-awaited, with years of on-and-off negotiations over import duties and market access. With Maharashtra likely to host its manufacturing facility and sales potentially starting soon, Tesla’s India journey appears to be finally gaining traction.
