Tesla Considers Building Electric Vehicle and Battery Factory in India

Tesla is considering building an electric vehicle and battery manufacturing plant locally to target the Indian market.

On the 18th (local time), major foreign media outlets reported, citing sources, that Tesla is discussing such plans with the Indian government.

According to sources, Tesla's senior executive in the supply chain division, Khan Budhiraj, visited India and met with senior government officials, including Rajiv Chandrasekhar, the Minister of State for Electronics and IT. The two sides reportedly discussed plans to build an electric vehicle assembly plant in India and to produce electric vehicle batteries locally.

This visit to India is analyzed as showing Tesla's strategic shift to target the local market.

Last year, Tesla discussed lowering automobile import tariffs with the Indian government, but talks stalled when the Indian government demanded local production. During this visit, it is reported that discussions mainly focused on tariff reductions and utilizing India's policy of providing subsidies for locally produced electric vehicles.

Tesla currently has manufacturing plants in the United States, China, and Germany. Recently, foreign media reported that Tesla also discussed potential investments with the governments of South Korea and India.