Tesla may emerge as India’s third-largest car manufacturer if its plans go through

After years of discussions, the world’s top electric car maker Tesla has finally agreed to begin manufacturing operations in India.

Government sources have confirmed to Business Today TV that billionaire Elon Musk’s iconic company has submitted an initial proposal to establish manufacturing operations in India.

Sources said the company intends to build a gigafactory with an annual capacity to produce about half a million electric vehicles.

Tesla aims to introduce a wide range of electric vehicles and establish a robust charging infrastructure in India on a large scale.

Sources also indicate that Tesla intends to offer electric vehicles at a reasonable price range, although specific prices have yet to be determined.

If Tesla's plans go through, Tesla will emerge India's third largest car manufacturer in India after Maruti and Hyundai.

Tesla and Indian government officials will hold further meetings to discuss localisation plans, including the identification of a suitable location for the gigafactory.

Additionally, India may consider implementing a second phase of the Production Linked Incentive scheme to support Tesla. The government is also in discussions with the industry regarding the expansion of the FAME 3 scheme, as the FAME 2 scheme is set to conclude in March 2024.

These talks first came to light in late 2021 when Tesla officials visited the Ministry of Road Transport and Highways and met with Giridhar Aramane, the then secretary of the ministry.

Following the meeting, Aramane took a test drive with Tesla executives. In May 2023, Tesla officials held meetings with representatives from Niti Aayog, the Ministry of Heavy Industries, the Ministry of Road Transport and Highways, and other government bodies.