Tesla is in the advanced stages of discussions to establish its manufacturing plant in Gujarat, with expectations of an official announcement at the upcoming Vibrant Gujarat Summit in January 2024. The state’s favourable business climate is a significant draw for Tesla, and the Gujarat government has proposed Sanand, Becharaji, and Dholera as potential locations for the plant. Sources familiar with the matter indicated that Gujarat’s alignment with Tesla’s export-focused strategy is ideal for meeting both domestic and international market demands.
In its quest to enter the Indian market, Tesla has been actively negotiating with the Central government, seeking various concessions to ease regulatory barriers and create a supportive business environment for its operations in India. These discussions have been ongoing as part of a larger effort to address Tesla’s concerns and requirements.
Previously, Tesla has been in prolonged negotiations with Indian authorities, showing interest in establishing a manufacturing facility in the country. Additionally, Tesla has expressed a desire for reduced import taxes on some of its high-end models.
Should Tesla finalize its decision to set up shop in Gujarat, it would be joining an elite group of automobile companies, including Maruti Suzuki, Tata, and Morris Garage, that have already established manufacturing bases in the state.