Elon Musk’s Tesla is actively exploring options for its electric vehicle (EV) manufacturing plant in India. And if reports are to be believed, Maharashtra is emerging as a strong contender.
According to a report by the Economic Times, the Maharashtra government has offered land in Chakan and Chikhali, both near Pune, as potential sites for Tesla’s factory. The company’s renewed interest in India follows Musk’s recent meeting with Prime Minister Narendra Modi in the US, where discussions reportedly focused on investment incentives and tariff reductions on imported EVs.
While Maharashtra appears to be Tesla’s preferred location, the decision is yet to be finalised. Tesla is assessing key factors such as proximity to ports before committing to a site.
Chakan is one of India’s biggest automobile hubs, and is already home to global manufacturers like Mercedes-Benz, Tata Motors, Mahindra & Mahindra, Volkswagen, and Bajaj Auto. The region has a well-developed supplier network and infrastructure. Besides, Tesla already has an office, which could further streamline its operations in India.
Despite everything, Maharashtra’s government remains cautious, as per the ET report, citing people close to the development. The state has previously lost major industrial investments, including the Vedanta-Foxconn semiconductor plant and the Tata-Airbus aircraft project, to other states.
Alongside its manufacturing plans, Tesla has begun expanding its workforce in India. The company recently posted 13 job openings on LinkedIn, including roles in vehicle service, sales, customer support, and business operations. These positions, based in Mumbai and Delhi, suggest that Tesla is preparing to launch sales and service centres in India.
Beyond public hiring, Tesla is reportedly looking to poach top executives from Tata Motors, India’s leading EV manufacturer, as per the ET report. Industry insiders claim Tesla is actively reaching out to experienced professionals in India’s EV production and supply chain sector to strengthen its team.
A key figure in Tesla’s India strategy is Prashanth Menon, a senior executive who previously led Tesla’s India operations. After being reassigned to a project in the Netherlands when Tesla’s India plans stalled in 2022, Menon has now returned, indicating a renewed focus on Tesla’s entry into the Indian market.
Tesla has been exploring the Indian market for years but has faced multiple obstacles, primarily due to high import taxes. In 2021, Tesla had even finalised a store and office space in Mumbai, but its plans fell apart after failing to convince the Indian government to lower import duties on Tesla vehicles.
The EV maker had lobbied for tax reductions on fully assembled cars under $40,000, requesting a drop from 60 per cent to 40 per cent but the government refused to make exceptions. Tesla had proposed setting up a factory in India but wanted to first assess market demand through imported vehicle sales, a condition that was not accepted.
In 2023, Tesla officials engaged in multiple discussions with the Indian government regarding local component sourcing. Later that year, the company leased office space in Pune for five years, which further fueled speculation about its plans in India.
A breakthrough came in 2024, when the Indian government introduced a new EV policy, offering tax concessions for companies investing at least $500 million in local production. This move was widely interpreted as an effort to attract Tesla. However, Musk cancelled a planned India visit in April 2024 and instead made a trip to China citing “heavy Tesla obligations.”
Despite previous setbacks, Tesla’s latest efforts suggest serious intent to establish a presence in India. If Maharashtra secures the investment, it could become a key player in Tesla’s global manufacturing network. However, with Tesla still evaluating its options, the final decision remains uncertain.
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