Tesla in Discussions with Reliance for Establishing Electric Vehicle Manufacturing Hub in India

Tesla in Discussions with Reliance for Establishing Electric Vehicle Manufacturing Hub: Highly placed sources say Tesla is in talks with Reliance Industries about forming a joint venture to build a manufacturing facility in India.

One person familiar with the development said that talks have been ongoing for over a month. RIL's objective in the joint venture is to build capacities for electric vehicles in India. The source said it shouldn't be construed as its entry into the automobile space.

“While the role of RIL hasn’t been crystalized yet, it is expected that the Indian conglomerate may play a significant hand in establishing the manufacturing facility and the allied ecosystem for Tesla in India,” said another source familiar with the matter.

???? Tesla in talks with Reliance to set up EV manufacturing arm in India. Sources say Maharashtra as the destination for the plant. (The Hindu) pic.twitter.com/3ojK8B09gF

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RIL launched India's first hydrogen truck in 2023, in partnership with Ashok Leyland, and unveiled removable and swappable batteries for electric vehicles in 2018.

As of press time, emails sent to Reliance Industries and Tesla had not been answered.

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According to Elon Musk, the entry of Tesla electric vehicles into India will be a "natural progression"

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Tesla is making its move

The company has been considering multiple locations, including Gujarat and Maharashtra, for setting up the plant, but sources say Maharashtra might be the most suitable.

Tesla plans to use the facility for domestic and export purposes, so it may prefer a location suitable for port facilities, according to the source.

Elon Musk, CEO of Tesla, said during a conversation with Nicolai Tangen, CEO of Norges Bank Investment Management at X (formerly Twitter) Spaces: “India is now the most populous country in the world based on population. "It's a natural progression to provide Tesla electric vehicles in India," Tesla CEO said in a session with Nicolai Tangen, CEO, Norges Bank Investment Management.

Within a month or two, Tesla officials will visit the country to finalize the plant's location and finalize the RIL joint venture.

If the JV talks with RIL don't work, Tesla might look for another domestic partner. The government approved a new electric vehicle scheme in March, positioning India as a hub for electric cars.

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