Tesla Likely To Set Up Its Base For India Operations In Gujarat

Tesla, the American electric carmaker, recently confirmed its India entry by registering a subsidiary under the name - 'Tesla India Motors and Energy Private Ltd' in Bengaluru. Now, it is reported that the state of Gujarat has made a strong pitch to invite the EV maker to set up base in the state, according to ETAuto. The EV giant is reportedly in talks with five Indian states including Gujarat to set-up its operations in the country. The Karnataka government has reportedly offered space to Tesla in Tumkur, on the outskirts of Bengaluru.

Also Read: Tesla To Set-Up Operations In Bengaluru, Registers Indian Subsidiary

The first product to be made available will be the affordable Tesla Model 3

Gujarat has emerged as a preferred destination for global automobile manufacturers, particularly for electric cars. Banking on the same, the state is reportedly making a strong pitch to Tesla to set-up a base in Gujarat. Manoj Das, additional chief secretary (ACS), Chief Minister's Office (CMO) and in charge ACS, industry and mines department, said to ETAuto that the Gujarat state government is in discussions with Tesla regarding the same. Moreover, the government has assured the EV maker will receive all possible assistance and incentives for setting up base in the state.

The official said to ETAuto, "The world's top most automobile companies have set up manufacturing plants in the state, which has become an automobile hub with key MSME players supporting large companies. Major electric car manufacturers and vehicle battery manufacturers are setting up facilities in Gujarat. We are hopeful that like other global automakers, Tesla will prefer Gujarat."

He further said, "Companies will be able to take advantage. Gujarat also has strategic advantages like ports and proximity to all major markets of India. In the past two months, we have had significant communication with the company and explained our new industrial policy and other advantages of being in Gujarat."

Also Read: Tesla In Touch With 5 State Governments To Set Up India Operations: Report

Tesla is expected to commence operations by June this year

According to reports, the company is expected to commence operations by June this year and the first product to be made available will be the affordable Model 3. The sedan is expected to go on sale by the end of the first quarter of FY2021-22. The pre-bookings for the electric car are expected to begin soon. However, Tesla hasn't revealed India arrival dates and prices yet.

Prabhu Ram, head of the industry intelligence group (IIG), CMR believes that EV maker's entry into India will play an essential role in transforming the country's mobility future. He said to ETAuto, "Over the short-term, Tesla's entry will give a boost to the government's policy initiatives, strengthen EV manufacturing in India, spur new mobility startups, and most importantly, hasten development of enabling EV infrastructure."

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