Rumours of Tesla Gigafactory in India heat up

giga shanghai stamping
Credit: Tesla

Rumours of Tesla’s plans to establish a factory in India have once again have resurfaced. Local media outlets have reported that talks between Tesla and the Indian government to build a Gigafactory, which had previously hit a roadblock over import tax duties, have now resumed.

According to sources cited by The Times of India, Tesla has started negotiations to construct a factory in India with an annual production capacity of up to 500,000 electric vehicles (EVs). While which specific vehicle models will be built at the factory have not been disclosed, the sources suggest that Giga India will primarily focus on manufacturing Tesla’s next-generation platform that will first launch at Giga Mexico. The report suggests a starting price for the EV of two million rupees (C$32,000/US$24,000).

In addition to serving the domestic market, Tesla is reportedly considering India as a base for exporting electric vehicles throughout the Indo-Pacific region.

“Tesla has come to us with an ambitious plan, and we are confident that the movement will be positive this time around, especially as it involves both local manufacturing and exports,” a source told The Times.

Tesla’s efforts to enter the Indian market have been ongoing for several years. It looked like the company may come to a deal to launch in India in 2021, but a disagreement over import tax duties led to a stalemate and the end of negotiations.

Talks resumed earlier this year, followed by an in-person meeting between CEO Elon Musk and Prime Minister Narendra Modi last month. That meeting appeared to be a successful one, with Musk saying afterwards his company plans to make a significant investment in India “as soon as humanly possible.”

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