Discussions with Tesla to establish manufacturing plant in Gujarat in final stages: Report

Tesla is expected to set up its manufacturing plant in Gujarat, with an official announcement likely at the Vibrant Gujarat Summit in January 2024, reported Ahmedabad Mirror, a part of India's largest print media house.

Tesla prefers the state due to its conducive business environment, the paper reported, also adding that the Gujarat government has given Sanand, Becharaji and Dholera as options to establish the plant. 

Persons in the know said Gujarat aligns well with the American car company's export-oriented approach to cater to both domestic and international demand, Ahmedabad Mirror reported. 

 Tesla has been engaged in negotiations with the Central government, seeking concessions that would facilitate a smoother entry into the Indian market. The demands for concessions were part of the broader discussions around easing regulatory hurdles and ensuring a conducive business environment for Tesla’s operations in the country.

Reuters had reported earlier that Tesla and India have been in talks for several months with the U.S. carmaker open to setting up a factory but also keen to get lower import taxes for some of its high-end vehicles.

If Tesla does end up coming to Gujarat, it will join a host of auto firms such as Maruti Suzuki, Tata and Morris Garage, all of which have manufacturing bases in the state, Ahmedabad Mirror noted.