It’s possible that Tesla is looking for a local partner to launch its business in India. According to well-placed sources, the US leader in electric vehicles is in discussions with Reliance Industries about a potential joint venture to establish the manufacturing plant there. An individual with knowledge of the situation stated, “Talks are at the beginning stages and have been ongoing for over a month.” According to the source, this action shouldn’t be seen as RIL’s foray into the auto industry. Building India’s electric car capacity is RIL’s goal in the joint venture.
Another well-placed person with knowledge of the situation stated, “While the role of RIL hasn’t been crystallized yet, it is expected that the Indian conglomerate may play a significant hand in establishing the manufacturing facility and the allied ecosystem for Tesla in India.” India’s first heavy-duty vehicle with an internal combustion engine running on hydrogen was introduced by RIL and Ashok Leyland in 2023. Moreover, RIL introduced swappable and detachable batteries for EVs last year.
Tesla’s debut
According to reports, Tesla has committed $2 billion to its future plans in India. The business has been considering a number of places to locate the factory, including Maharashtra and Gujarat. According to sources, Maharashtra might end up being the chosen site. According to the source that was previously cited, “Tesla plans to use the facility for domestic and export purposes, so it may prefer a location suitable for port facilities.”
During an X (formerly Twitter) Spaces session, Elon Musk, the CEO of Tesla, stated that India is currently the world’s most populous country in terms of population together with Nicolai Tangen, CEO of Norges Bank Investment Management. Just like every other nation, India ought to have electric vehicles. Tesla’s arrival in India is confirmed by the statement, “It’s a natural progression to provide Tesla electric vehicles in India.”
Looking for partner
In a month or two, senior Tesla officials are anticipated to travel to the nation to finalize the plant location and finalize the joint venture with RIL. According to sources, the company may look for a different domestic partner if the current negotiations with RIL don’t work out because the JV talks aren’t exclusive.
