Tesla in Talks for India Factory, Aims Electric Cars From 20 L

Tesla, led by Elon Musk, has initiated discussions with the Indian government regarding an investment proposal for establishing a car manufacturing facility in the country. The proposed factory would have the capacity to produce up to 500,000 electric vehicles annually, with prices starting from Rs 20 lakh.

According to government sources, Tesla, which already has a notable presence in China through its factories, is considering India as a potential export hub. The company aims to export cars to countries in the Indo-Pacific region.

According to a source, Tesla has presented an ambitious plan, raising hopes for positive outcomes in India. The plan involves local manufacturing and exports, which is seen as a promising development. The talks are being led by the commerce and industry ministry, with the government aiming to secure a favorable deal while ensuring fair competition.

A questionnaire sent to Tesla’s US headquarters went unanswered as of the press time.

The change in Tesla’s plans to invest in India follows a recent meeting between CEO Elon Musk and Prime Minister Modi during the latter’s high-profile visit to the US last month. Musk expressed his admiration for Mr. Modi and mentioned that the Prime Minister had been urging him to invest in India.

During an interview on June 21, Musk stated, “He (Mr. Modi) really cares about India because he’s pushing us to make significant investments in India, which is something we intend to do. We are just trying to figure out the right timing. I am confident that Tesla will be in India and will do so as soon as humanly possible.”

Tesla reopened dialogue channels with the Indian government in May, with a team from the company visiting India a month before Prime Minister Modi’s visit. This move is seen as part of a global strategy by companies to expand their production bases beyond China. Despite this, Elon Musk, the CEO of Tesla, remains optimistic about manufacturing in China. If the proposal for a Tesla factory in India goes through, it would be a significant boost for the government’s ‘Make in India’ initiative. This initiative has already attracted substantial investments from vendors of companies like Apple, who have chosen to invest in domestic production and utilize India as an export base.

Tesla has shown interest in the Indian market for several years. However, the company’s plans to enter India were put on hold last year when it couldn’t secure special incentives from the government to import its cars at reduced duty. The government insisted that Tesla manufacture vehicles within India instead of importing them from other countries, including China.

India, recognizing the significant potential of its local car market, has been actively promoting its growth. With sales of approximately 3.9 million units last year, India now holds the position of the world’s fourth-largest car market, trailing only China, the United States, and Japan.


Tesla is in talks with the Indian government to establish a car manufacturing facility in India, aiming to produce electric vehicles starting from Rs 20 lakh. The discussions are led by the commerce and industry ministry, with hopes for a positive outcome. This follows a meeting between Elon Musk and Prime Minister Modi, who urged Tesla to invest in India.

Akash Shrivastav

My name is Akash Shrivastav, and I am a Blogger. I have 8 years of experience in blogging for Finance, Business, Investment, Stock Market, Cryptocurreny and more. Through my writing, I aim to provide readers with insightful and informative content.