Tesla's momentum towards India seems to be increasing. The latest progress shows that Tesla is in talks with Indian billionaire Mukesh Ambani to launch a "car making project" in the Indian market.
According to local Indian media citing sources, the American electric vehicle giant is currently in talks with Reliance Industries to establish a factory in India, and the two sides are discussing the establishment of a potential joint venture.
According to a person familiar with the negotiation process, the preliminary discussions have been going on for over a month. The source added that this negotiation should not be interpreted as "Reliance's massive entry into the automotive industry", but rather as Reliance's desire to cultivate the ability to develop electric vehicles in India.
Another source stated that although the specific role of Reliance in this potential collaboration has not yet been finalized, it is expected that the group may be heavily involved in Tesla's manufacturing facilities and related ecosystem construction in India.
It is worth mentioning that Reliance Group has been practicing this goal in recent years. In 2023, Reliance partnered with Indian automaker Ashok Leyland to launch India's first hydrogen powered heavy-duty truck. In addition, last year, Reliance also announced detachable and replaceable batteries for electric vehicles.
Naturally
The cooperation negotiations between Tesla and India have actually been heard of for a long time. Tesla CEO Elon Musk stated at a meeting on April 9th that Tesla's provision of electric vehicles in India would be a fairly natural development.
He added, "In terms of population, India is now the most populous country in the world. India should have electric cars, just like other countries have electric cars."
At the beginning of this month, it was rumored that Tesla would send a team to India this month to explore the location of an electric vehicle factory, with an investment of between $2 billion and $3 billion.
According to sources, Maharashtra and Gujarat have submitted attractive land supply plans to Tesla to attract Tesla to establish electric vehicle manufacturing facilities locally.
Earlier this year, the Indian government also announced a new electric vehicle policy, providing lower import tariffs for electric vehicles, on the condition that car manufacturers must commit to producing cars domestically in India within three years. This policy is seen as paving the way for car manufacturers such as Tesla to enter the country.
India's electric vehicles are experiencing steady growth, currently led by domestic automaker Tata Motors. In 2023, electric vehicles accounted for 2% of total car sales in the country, but the government's goal is to increase this number to 30% by 2030.