Tesla will set up a car manufacturing plant in Gujarat: Announcement will be made in Vibrant Gujarat Summit in January-2024, Elon Musk will also come to India
Elon Musk’s electric vehicle (EV) manufacturing company Tesla Inc. will build its car manufacturing plant in Gujarat. According to reports, the official announcement is expected to be made at the Vibrant Gujarat Global Summit in January 2024.
According to a report in Ahmedabad Mirror, the announcement of setting up a Tesla plant in Gujarat will be made in the presence of the company’s CEO Elon Musk. India will allow this American EV company to import electric vehicles in the country from next year and set up a manufacturing plant within a period of two years.
Tesla aims to meet domestic and international demand from Gujarat plant.
According to the report, Gujarat’s strategic location and business environment have made it a preferred location for Tesla’s manufacturing plant. The state government has presented Sanand, Dholera and Becharaji as options for the location of the plant. Tesla aims to meet both domestic and international (re:export) demand from the Gujarat plant.
News about Tesla’s plans for India has been going on for a long time. Many of these reports reveal the American automaker’s demand for concessions and reducing regulatory rules for Tesla’s operation in the country.
Tesla will be allowed to import cars at a concessional import duty of 15-20%
Meanwhile, top government officials told Business Today last month that Tesla may be allowed to import fully built cars at concessional import duty of around 15-20%, which is applicable on such imports. Much less than the current 100%.
This will depend on Tesla setting up a manufacturing plant in India. Officials had said that if Tesla fails to meet the condition, India will take steps to recover the entire duty benefit from the company.
Indian EV manufacturers like Tata Motors and M&M questioned why Tesla should be given any special treatment. Other auto companies like Maruti Suzuki, Tata Motors and MG already have manufacturing plants in Gujarat.
