Tesla India Land Hunt: Maharashtra Leads

Aakhir Tak – In Shorts

Tesla is scouting land in India to establish an electric vehicle (EV) manufacturing plant.
Maharashtra is the leading contender, offering sites near Pune.
Tesla is seeking concessions before setting up a plant in India.
Other states are competing to attract Tesla’s investment.
Tesla has also listed job openings for various positions in India.

Aakhir Tak – In Depth

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Elon Musk’s Tesla is hunting for land in India to set up an electric vehicle (EV) manufacturing plant. Maharashtra is emerging as the leading contender, according to a report by The Economic Times (ET). Tesla is actively searching for electric vehicle sites.

The company is evaluating potential locations and is in talks with state officials. This development follows Elon Musk’s meeting with Prime Minister Narendra Modi in the US. Musk reportedly sought concessions, including lower tariffs on imported EVs, to facilitate Tesla’s entry into the Indian market.

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According to the report, Maharashtra is Tesla’s preferred choice due to its existing presence in Pune, where the company has an office. Many of Tesla’s suppliers are also based in the state, making it a natural choice for expansion.

The Maharashtra government has reportedly offered sites near Chakan and Chikhali, both located close to Pune. Chakan is a major automobile manufacturing hub, home to companies like Mercedes-Benz, Tata Motors, Mahindra & Mahindra, Volkswagen, and Bajaj Auto.

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However, Maharashtra officials have clarified that discussions are still ongoing, and no final agreement has been reached. Tesla is carefully evaluating factors such as proximity to a port before making a decision.

While Maharashtra is leading the race, other states are also vying for the project. Tesla’s plans could change depending on the incentives offered by different states. Maharashtra has previously lost high-profile investment projects to other states, including the Vedanta-Foxconn semiconductor plant and the Tata-Airbus aircraft manufacturing project. This time, state officials are being cautious in negotiations with Tesla.

Tesla’s Job Postings Signal Expansion in India

Shortly after Musk’s meeting with Modi, Tesla listed job openings for 13 roles on LinkedIn, indicating the company’s renewed focus on India. The positions are based in Mumbai and Delhi and include roles in vehicle service, sales, customer support, and business operations. Industry experts believe these job postings suggest Tesla may soon open sales showrooms in India, even before setting up a manufacturing plant.

Talks with Indian EV Industry Leaders

Tesla has started reaching out to top executives at companies like Tata Motors, India’s leading EV manufacturer. This suggests Tesla may be exploring partnerships or sourcing components locally.

Senior Tesla executive Prashanth Menon is expected to play a key role in the company’s India operations. Menon previously led Tesla’s India market efforts before being assigned to the Netherlands in 2022. Sources say he has now returned to India to assist with the company’s expansion plans.

Tesla’s Long-Delayed India Entry

Musk has hinted at Tesla’s India entry multiple times over the years. In 2021, Tesla finalized plans for a showroom and office in Mumbai’s Lower Parel area, but the plans did not materialize as the company was unable to negotiate lower import duties with the Indian government.

At the time, Tesla had requested a reduction in taxes on imported EVs priced below $40,000 from 60% to 40%, arguing that it would help assess demand before setting up a local factory. However, the Indian government rejected the request, insisting that Tesla must first commit to local manufacturing.

In 2023, Tesla officials held discussions with Modi and government representatives regarding local component sourcing. Later that year, Tesla leased an office space in Pune for five years, further signaling its interest in the Indian market.

New EV Policy and Musk’s Cancelled India Visit

In 2024, the Indian government introduced a new EV policy offering duty concessions to companies willing to invest at least $500 million in local manufacturing. This was widely seen as an effort to attract Tesla.

Musk was expected to visit India in April 2024 to announce Tesla’s investment plans but canceled his trip at the last minute, citing “very heavy Tesla obligations.” Instead, he traveled to China, raising questions about Tesla’s India strategy.

Aakhir Tak – Key Takeaways to Remember