Tesla is actively seeking a local partner to set up operations in India, sources shared with Business Line. Reports indicate that the American electric vehicle manufacturer is engaged in discussions with Reliance Industries Limited (RIL) for a potential joint venture to set up a manufacturing facility in the country.
According to an insider familiar with the matter, these talks have been in progress for over a month. However, the source emphasised that this should not be misconstrued as RIL's entry into the automobile sector. Rather, RIL aims to bolster electric vehicle capabilities in India through this partnership.
Another source, privy to the negotiations, suggests that while the specifics of RIL's role are yet to be finalised, the conglomerate is expected to play a significant part in setting up the manufacturing unit and supportve ecosystem for Tesla in India. This move follows RIL's recent ventures in the electric vehicles, including the launch of India's first hydrogen internal combustion engine-powered heavy-duty truck in partnership with Ashok Leyland in 2023 and the introduction of removable and swappable EV batteries last year.
Moneycontrol could not independently verify the report.
It's estimated that Tesla has earmarked $2 billion for its forthcoming endeavours in India, with the company exploring various potential locations, including Gujarat and Maharashtra, for the manufacturing plant. However, Maharashtra seems to be gaining traction as the preferred choice, with considerations for its proximity to port facilities, crucial for both domestic operations and exports, as disclosed by insiders.
Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
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