Gujarat gov’t optimistic about Tesla India deal

Gujarat gov’t optimistic about Tesla India deal

Tesla CEO Elon Musk with India Prime Minister Narendra Modi (Photo: Narendra Modi/Twitter)

Tesla’s potential electric vehicle factory in India is starting to become more and more plausible. Following reports suggesting that Elon Musk may potentially announce Gigafactory India as early as next month, the Health Minister of Gujarat, India, has shared some encouraging statements about the potential project.

In a comment on Thursday, Gujarat Health Minister and government spokesperson Rushikesh Patel stated that the Gujarat government is optimistic that Tesla would set up a factory in the country. The minister also noted that Tesla officials had been looking at several locations in India, as noted in a report from the Hindustan Times.

“The company officials have visited Gujarat, and indications suggest a preference for the state as the location for their first factory in the country. Our team is in ongoing communication with Tesla officials, and we remain hopeful of an announcement in this regard soon,” Patel said.

While the minister did not provide further details, a government official did suggest that Sanand was a possible location that had been visited by Tesla officials. Sanand is considered the automotive hub of Gujarat. Other locations that are reportedly being considered are Maharashtra and Tamil Nadu, as per a previous Bloomberg News report.

Overall, the state government is reportedly expecting Tesla to announce its decision at the Vibrant Gujarat Summit, which is expected to be held in Gandhinagar in January 2024.

This potential Tesla deal wouldn’t be the first time Gujarat attracted auto giants. Back in 2007, then-Chief Minister Narendra Modi encouraged Ratan Tata to establish a facility in Gujarat. Tata’s move to Gujarat helped make Sanand into an auto hub, and the area has since attracted investments from Ford, Maruti Suzuki, and MG, among others.

Bloomberg News’ previous report suggested that India might allow Tesla to ship its vehicles to the country in 2024, and that the company will have a two-year window to construct its factory. The report suggested an initial investment of about $2 billion, with a long-term vision of as much as $15 billion in domestic auto parts purchases. Gujarat government officials, however, have maintained that Tesla would not be given a special incentive if the EV maker does establish a facility in the country.

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