Reports indicate that Tesla is potentially seeking a domestic collaborator to initiate its operations within India. Sources familiar with the matter suggest that the American electric vehicle giant is engaging in discussions with Reliance Industries for a prospective partnership aimed at establishing a manufacturing hub in the nation.
According to insiders, Tesla is exploring avenues for a local alliance to kickstart its endeavors in the Indian market. Credible sources reveal ongoing negotiations between the renowned U.S. electric car manufacturer and Reliance Industries, hinting at a plausible joint venture initiative for constructing a production facility within the country.
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According to a knowledgeable individual, discussions are in their preliminary stages and have persisted for over a month. This source emphasized that this potential collaboration should not be interpreted as Reliance Industries Limited (RIL) venturing into the automotive sector. Rather, RIL aims to bolster electric vehicle capabilities in India through this joint venture.
Another well-informed source shed light on RIL’s anticipated role, stating that while specifics regarding RIL’s involvement are yet to be finalized, the Indian conglomerate is expected to play a significant role in establishing both the manufacturing facility and the supportive ecosystem for Tesla in India.
In 2023, RIL, in conjunction with Ashok Leyland, introduced India’s inaugural heavy-duty truck powered by a hydrogen internal combustion engine. Additionally, RIL unveiled removable and swappable batteries for electric vehicles last year.
Despite attempts, emails sent to Reliance Industries and Tesla have remained unanswered as of press time.
Tesla is reportedly allocating $2 billion towards its forthcoming ventures in India. The company has been evaluating various sites, including Gujarat and Maharashtra, as potential locations for its manufacturing plant. Maharashtra appears to be gaining traction as the preferred choice. A source mentioned, “Tesla intends to utilize the facility for both domestic consumption and exports, hence prioritizing a location with suitable port facilities.”
During a session on X Spaces (formerly Twitter Spaces) with Nicolai Tangen, CEO of Norges Bank Investment Management, Elon Musk, CEO of Tesla, affirmed, “India is now the most populous country globally. India should embrace electric cars just like any other nation. Introducing Tesla electric vehicles in India is a natural progression,” thereby confirming Tesla’s venture into the Indian market.
Seeking a partner, senior Tesla officials are anticipated to visit India soon to finalize the plant location and solidify the joint venture with RIL within a month or so. Sources indicate that as the JV discussions with RIL are not exclusive, Tesla may explore other domestic partnerships if the ongoing talks do not materialize.