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- Tesla CEO Elon Musk is considering India for the site of Tesla's next overseas gigafactory, The Times of India reports, as rumors of the EV maker's global expansion continue to grow.
- India's Prime Minister Narendra Modi is said to have made a push for local production of Tesla models in the country, both for the domestic market and for export, as part of the country's high-tech industrial initiative.
- The EV maker is also reportedly looking at sites in southern Europe for the site of what would be its second gigafactory on the continent, after opening the Berlin-Brandenburg plant in 2022.
After a hiatus of three years, talk of a possible Tesla gigafactory in India has resurfaced after a high-profile visit by Indian Prime Minister Narendra Modi to the US in June, during which he met with Tesla CEO Elon Musk. The EV maker is now said to be discussing plans for a factory with a capacity of 500,000 vehicles a year, The Times of India reported this week.
Tesla's interest in India is said to have reappeared in May of this year, with a visit from Tesla executives having taken place a month before Prime Minister Modi's visit to the US and prior to his meeting with Musk.
A possible gigafactory in India would bring the number of Tesla overseas sites to three, after Shanghai and Berlin-Brandenburg. It would also allow Tesla to sell vehicles in India on much more favorable terms, as the EV maker has previously lobbied unsuccessfully to bypass import duties in sales to India, the paper notes. In turn, the country's officials have called for Teslas to be produced locally for the Indian market and for exports.
Speaking of exports, a possible gigafactory India would see Tesla increase its shipping of cars from the Asia-Pacific region following the success of exports to Europe from Shanghai.
The push for a Tesla presence in India comes amid a renewed effort by the government for a "Make in India" pitch to large corporations, many of which had established a manufacturing presence in China over the past three decades instead.
EV sales in India have skyrocketed over the past couple of years, with the country being in the top five when it comes to overall passenger car purchases, having recorded 3.89 million sales in 2022. Some 50,000 of those sales were EVs in 2022, with 2023 expected to see a big jump once again.
Reports of a possible Tesla gigafactory in India follow weeks of speculation regarding a possible second European plant, this time in France. Elon Musk was said to have met with French officials in June during an extended trip to Europe, as well as those from Italy and Spain, while considering potential sites in all three countries. The odds of a second factory in Europe, especially France, were judged to be rather slim by some industry analysts, who pointed out the stringent labor regulations in the country, strong unions, and a relatively high cost of labor.
Yet another gigafactory in Europe or elsewhere, following the recent opening of Austin and Berlin sites, also assumes continued growth in demand for Tesla models, nearly a year after EV makers including Tesla have struggled against lagging demand, prompting price cuts.
Will Tesla manage to hang on to its market share by the end of the decade, or will existing automakers be able to successfully peel away a major portion of its sales? Let us know what you think.
Jay Ramey grew up around very strange European cars, and instead of seeking out something reliable and comfortable for his own personal use he has been drawn to the more adventurous side of the dependability spectrum. Despite being followed around by French cars for the past decade, he has somehow been able to avoid Citroën ownership, judging them too commonplace, and is currently looking at cars from the former Czechoslovakia. Jay has been with Autoweek since 2013.
