‘India’s Detroit’ to pursue Tesla aggressively for EV investment opportunity

Tesla CEO Elon Musk / Photo credit: Shutterstock

Know as “India’s Detroit” – a US state known for its manufacturing prowess – the South Indian state Tamil Nadu is set to pursue Elon Musk’s Tesla aggressively for its electric vehicle manufacturing investment in the country, Bloomberg reported.

The news comes after Musk said he is set to visit the country, with the possibility of making a local investment.

While Tesla’s investment in India is not yet set on paper, Indian Industries Minister Thalikottai Rasuthevar Baalu Rajaa said Tamil Nadu will be pursuing opportunities for electric vehicle manufacturing “from all global car majors” as the state has the “best electric vehicle policies and ecosystem.”

At the moment, Tamil Nadu’s capital Chennai is already home to manufacturing factories of Nissan, Renault, Hyundai, and BMW. However, the state still plans to boost the car manufacturing hub’s capacity through new incentives.

In March, India reduced the import tariffs on EVs to as low as 15% if a company invests at least US$500 million and sets up a manufacturing plant in the country. This is down from a 70% to 100% rate before.

Previous reports have said that aside from Tamil Nadu, Tesla is also looking into setting up shop in Maharashtra and Gujarat, which also houses car manufacturing plants of Tata Motors and Hyundai. Both also have established infrastructure and ports to facilitate exports.

Reports of Tesla’s investment in India have long been brewing. In June 2023, Musk posted on X (formerly Twitter) that he is keen to invest in India “as soon as humanly possible” after meeting Indian prime minister Narendra Modi during his state visit to the US.

If Tesla’s investment pushes through, it comes at an opportune time for Modi, as he is also set for reelection in the country’s upcoming federal elections, beginning April 19.

See also: Malaysia’s national carmakers are joining the EV wagon, but hurdles remain