Electric Automaker Tesla Might Set Up its Next Gigafactory in India

author: Manish Kharinta   

A rendering of Tesla's gigafactory in Berlin.

In the fall of 2018, electric automaker Tesla was actively drafting strategies to expand its operations across Asia. The company enforced its plan of action by establishing its first-ever overseas Gigafactory in eastern China. In November 2018, we reported that Tesla Chief Executive Elon Musk was considering establishing a presence in India as well.

According to Musk's tweet, Tesla was working on finalizing a list of countries where it would eventually set up its new operations. The CEO also hinted that Tesla might enter India as early as 2019 even though at the time, the company was only focusing on developing its existing network in China, the U.S., Eastern Europe and Japan.

Musk confirmed Tesla's plans for India in a Dec 2020 tweet announcing that the EV manufacturer will establish a presence in the country by 2021.

Earlier this year, Tesla incorporated a sub-brand called Tesla Motors India. According to industry reports, the EV manufacturer is close to finalizing the location for its first retail outfit in India and is already headhunting candidates for top management positions. 

However, there has been no official word from Tesla on how the company is advancing its plans in the country. Some industry insiders speculate that Tesla will likely kick things off by selling the Model 3 in India, which the company will import. The next step would be for Tesla to set up a production facility in the South Indian state of Karnataka. 

Tesla is also receiving plenty of support from India's government bodies. The country's Transport Minister, Nitin Gadkari, went on record to claim that the California company will receive attractive incentives to establish a production facility in India.

Gadkari said that Indian government will do everything in its power to make sure that Tesla's production costs are lower than any other country in the world, including China.

As part of the incentives offered by the Indian government, Tesla will be able to develop its vendor network in the country and institute industrial clusters in India. 

Gadkari also proposed that over the course of the next couple of years, India will be capable of developing electric vehicles of its own that will be built to match Tesla's standards.

Considering the success of other models like Ford Ecosport which are exported from India and the fact that Tesla already sources a wide range of components from the country, conditions in India seem conducive for Tesla's next gigafactory.

Tesla currently produces vehicles in California and China and two new factories are under construction in Germany and Texas.

Manish Kharinta

Manish Kharinta is a automotive writer based in the Los Angeles area. He has worked for automotive industry websites TheSmokingClutch.com, CarDekho.com and CarBikeindia.com. His experience ranges from covering auto shows, to car reviews and breaking automotive news. Manish aims to bring forth his unique perspective on automotive design and technological innovations in the automotive industry.