Tesla Eyes Rajasthan For Potential Electric Car Manufacturing Hub In India

As Tesla, the US-based electric vehicle (EV) titan, seeks an entry into the Indian market, the state of Rajasthan has rolled out the red carpet with enticing proposals. Joining the race are Gujarat, Tamil Nadu, and Maharashtra, all eager to host Tesla's potential manufacturing facility.

An introductory meeting between Tesla's senior executives and the Rajasthan government last week was encouraging. Following this, Tesla is poised to conduct a site survey, with plans to share the findings with Rajasthan's investment promotion department shortly. In anticipation, Rajasthan has earmarked several land plots, which have been offered to the EV behemoth, as per a Business Standard report.

The Bureau of Investment Promotion has reportedly recommended Bhiwadi industrial town as Tesla's potential base. An official stated, “We believe the Salarpur or Khushkhera Industrial areas are best suited for Tesla's requirements. Designed as an auto hub, these zones already host prominent auto manufacturers and ancillary industries. Moreover, they offer excellent connectivity via the Delhi-Jaipur expressway and robust infrastructure support."

These zones are integral to the upcoming Phase-II expansion of the Rajasthan State Industrial Development and Investment Corporation Ltd (RIICO), encompassing areas like Tapukara, Khushkhera, Karoli, and Salapur. Sources also indicated that the investment promotion bureau is crafting a bespoke package to entice Tesla.

"Typically, land in these zones is auctioned electronically. However, for substantial investments like Tesla's, we can offer direct allotment. We're competing with industrial giants, highlighting our advantages over their shortcomings," the source elaborated.

Officials emphasised Rajasthan's strategic location near the national capital region, seamless connectivity to Delhi and Mumbai by road and rail, cost-effective labour, and vast land reserves. Plans to develop a new airport near Bhiwadi and a railway cargo terminal are also underway.

This fierce competition among states coincides with Elon Musk's recent visit to India and his meeting with Prime Minister Narendra Modi, as reported internationally. A team from Tesla's US headquarters is reportedly on the lookout for suitable locations for the company's envisaged $2-3 billion EV manufacturing facility in India.

Tesla's intentions to establish a manufacturing unit in India follow the government's decision to slash import duties on certain EVs for companies committing to invest a minimum of $500 million (Rs 4,150 crore) and establish a production facility within three years.