Tesla is considering a joint venture with Reliance, India’s largest conglomerate. Reliance aims to assist Tesla in building a manufacturing facility and EV infrastructure in India.
Elon Musk’s visit is expected to be followed by the announcement of further details on a potential Tesla factory in India and the company’s investment in the country. Reportedly, Tesla has been surveying potential sites for a manufacturing plant in India and a Tesla team is anticipated to arrive in the country to continue the site search.
Gujarat and Maharashtra are among the locations that Tesla has supposedly pinpointed. It is expected that Tesla will announce a $2 billion investment in India, with the funds designated for a gigafactory and other areas to support EVs.
This investment follows the Indian government’s new policy for electric vehicles, which offers benefits to companies that invest a minimum of $500 million in the country. Under the policy, companies investing in India are required to establish manufacturing facilities in the country and commence domestic EV production within three years.
However, the benefits offered outweigh the criteria. Notably, companies investing $800 million in India can import up to 8,000 EVs annually at a reduced import duty of 15%.