Tesla Eyes Major Partnership with Reliance for India's First EV Plant: Strategic Analysis & Details

Tesla, under Elon Musk’s leadership, is exploring a partnership with Reliance Industries Ltd. to establish its inaugural electric vehicle (EV) manufacturing facility in India. This potential collaboration marks a significant step toward Tesla’s entry into the Indian automotive market.

Reliance’s Role in Tesla’s India Venture

While specific details are still emerging, Reliance Industries Ltd. is expected to play a pivotal role in facilitating Tesla’s factory setup and operational activities in India. Last year, Reliance made strides in the EV space by introducing removable and swappable batteries for electric vehicles, showcasing its commitment to sustainable mobility.

Upcoming Discussions and Plans

According to reports from The Hindu BusinessLine and Reuters, senior Tesla executives, including Elon Musk, are scheduled to visit India soon to engage in discussions with Prime Minister Narendra Modi. The focus will be on finalizing the plant’s location, operational framework, and the terms of the joint venture. Potential locations under consideration include Gujarat and Maharashtra, with Maharashtra being a preferred choice.

Tesla’s Commitment to India

Elon Musk’s enthusiasm for India was evident when he expressed his intent to bring Tesla to the country. This move aligns with the Indian government’s efforts to attract global EV manufacturers. Reports indicate that Tesla is poised to make an initial investment of approximately $2 billion for the manufacturing plant. Moreover, there’s a proposed commitment to enhance auto part procurement from India, reaching up to $15 billion.

Anticipation for Tesla’s Debut

While Tesla’s presence in India has been teased by sightings of a red Model X in Bangalore, the company’s official entry is eagerly awaited. However, Tesla’s focus in India is likely to revolve around the Model Y, followed by the introduction of a new two-door electric car. More information is expected to surface shortly, promising an exciting chapter in India’s EV landscape. Stay tuned for updates!

Model X 75D, old version. Clearly someone has brought this personally. Not a Tesla test car.

They also don't do RHD Model S and X anymore. https://t.co/w3g5sqzonc

— Tesla Club India® (@TeslaClubIN) December 31, 2023

Via @ mysmartprice

We did some back of the napkin math on expected #TeslaIndia Model 3 & Y prices⚡️. These are our rough guesstimates👀

Model 3 RWD can start at around 37-38L
Model 3 LR around 45L
Model Y RWD around 42L
Model Y LR around 48L
Model Y Perf around 53L

We first considered US… pic.twitter.com/Q1xY5cB1QI

— Tesla Club India® (@TeslaClubIN) March 16, 2024