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Tesla to Begin Manufacturing Operations in India

Plans for Gigafactory and Expansion

After years of discussions, Tesla, the world’s top electric car maker, has finally submitted a proposal to establish manufacturing operations in India. This move marks a significant development in Tesla’s global expansion plans and signals its entry into one of the world’s largest automobile markets.

Tesla’s Proposal and Objectives

Government sources have confirmed that Tesla has submitted an initial proposal to build a gigafactory in India with an annual capacity to produce approximately 500,000 electric vehicles. The company aims to introduce a wide range of electric vehicles and establish a robust charging infrastructure in India, thereby accelerating the adoption of sustainable transportation on a large scale.

Affordable Electric Vehicles and Market Impact

Sources indicate that Tesla intends to offer electric vehicles at a reasonable price range, although specific pricing details have yet to be determined. If Tesla’s plans materialize, the company is poised to become India’s third-largest car manufacturer, following Maruti and Hyundai. This entry has the potential to reshape the Indian automotive market and drive the shift towards electric mobility.

Localization and Government Support

Tesla and Indian government officials will engage in further discussions regarding localization plans, including the identification of a suitable location for the gigafactory. Additionally, the government may consider implementing a second phase of the Production Linked Incentive scheme to support Tesla’s manufacturing operations. Talks are also underway to expand the FAME (Faster Adoption and Manufacturing of Electric Vehicles) scheme, with the FAME 2 scheme set to conclude in March 2024.

Progress and Previous Engagements

Initial talks between Tesla and Indian government officials began in late 2021 when Tesla representatives visited the Ministry of Road Transport and Highways. Subsequent meetings were held with key stakeholders, including Niti Aayog, the Ministry of Heavy Industries, and other government bodies. These engagements laid the foundation for Tesla’s formal proposal and underscore the collaborative efforts between the company and the Indian government.


Tesla’s decision to begin manufacturing operations in India reflects the country’s growing importance in the global electric vehicle market. The establishment of a gigafactory and the introduction of affordable electric vehicles will contribute to India’s efforts to transition towards sustainable transportation and reduce carbon emissions.

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