Tesla’s India Plans: Gujarat Hopes to Host the EV Giant, But Won’t Offer Any Special Incentives

By | January 6, 2024

Gujarat is one of the states that is vying for Tesla’s first manufacturing plant in India. The state’s Micro, Small and Medium Industries Minister Balwant Singh Rajput said that no final decision has been made yet on Tesla’s proposal to set up a facility in the state. He added that he hopes that Elon Musk, the founder and CEO of Tesla, will make an announcement during the Vibrant Gujarat 2024 conference, which will be held next week. Rajput said that he had responded to some queries regarding Musk’s presence at the event.

Gujarat Won’t Change Its Policies for Tesla

However, Gujarat also made it clear that it will not offer any special treatment or incentives to Tesla, unlike some other states that have been wooing the world’s largest electric car (EV) company. Gujarat’s Additional Chief Secretary of Industries and Mines Department, SJ Haider, said that Gujarat is a policy-driven state and it will not make any changes just to invite Tesla. He said that Gujarat has a conducive environment for the EV sector, and that many big companies like Maruti Suzuki and Tata Motors already have their manufacturing facilities in the state.

Tesla Faces High Import Duty in India

Tesla has been eyeing the Indian market for a long time, but has faced several hurdles, mainly the high import duty on completely built units (CBU). Tesla has been lobbying for a tax reduction, as the current duty makes its cars unaffordable for most Indian customers. According to a recent report by Bloomberg, Tesla and India are close to reaching an agreement, under which Tesla will start shipping its cars to India in 2024, and will establish a plant within two years. However, the central government has clarified that there is no plan to reduce the duty on imported cars.

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