Tesla may join hands with Reliance for business in India
Tesla, one of the big electric vehicle (EV) companies, may soon start business in India. Tesla is in talks with Reliance Industries (RIL) to set up a manufacturing plant in the country. Tesla can invest two billion dollars in this plant.
A media report quoted sources with knowledge of the matter as saying, “These talks are in the initial stages.” However, this should not be seen as RIL’s entry into the automobile sector. In this joint venture, the company’s objective will be to create EV capacity in the country for Tesla. EV sales in the country have increased rapidly in the last few years. However, this is very less compared to big markets like America and China. Recently, Tesla Chief Elon Musk said in a session with Nicolai Tangen, Chief Executive Officer of Norges Bank Investment Management on social media platform There should be electric cars. Making Tesla vehicles available in the country would be a natural progression.” In the last few months, Tesla has intensified efforts to set up a factory in India.
The governments of Gujarat and Maharashtra have offered land to Tesla to set up an EV factory. The company plans to sell the EVs manufactured in this factory in the country as well as export them. Recently, a Financial Times report said that Tesla will focus on states like Gujarat, Maharashtra and Tamil Nadu for its factory where the automotive industry is already present. Due to declining demand in big markets, it is exploring opportunities in new markets. The company’s sales have declined by 8.5 percent in the first quarter of the current year. This is the first time in almost four years that the company’s quarterly sales have declined on a year-on-year basis. This has increased apprehensions about Tesla’s growth.
Tesla has delivered 3,86,810 vehicles in the first quarter. Falling sales of electric vehicles worldwide and tough competition from EV makers like BYD are the main reasons behind this. Tesla had sold about 4,23,000 units in the same quarter last year. The company had also reduced the prices of its EV but despite this there has been a decline in its sales.
