That Tesla is coming to India is now confirmed. What isn’t though is which part of the country will Tesla choose to establish its foothold here. Much like in the United States, states in India have started wooing the electric vehicle (EV) company for its production facility that will not only serve the Indian market but be used as a base for exports. Union minister Piyush Goyal, however, is not keen to read much into the state vs state matter.
Speaking to India Today, Goyal explained that Tesla CEO Elon Musk understands India’s competitive manufacturing costs as well as rich talent pool. This will allow India to not just be a fertile market for Tesla but also serve as a crucial base for global markets. But for that, a manufacturing facility will be required with reports suggesting the EV company looking at investing around $3 billion. But where? Goyal was nonchalant when asked. “Hum Bharat ke rehne wale hai Bharat ki baat karte hai (We are Indians, we talk about India).” But why is the location of a Tesla factory so important?
(Also read: Tesla may generate $3.6 billion revenue from India alone)
What’s the big deal about a Tesla factory?
Tesla factories are referred to as Gigafactories. And there is good reason for it. These facilities are among the biggest factories for car manufacturing and even overall. The smallest Tesla Gigafactory is in New York covers an area of 88 acres. Giga Shanghai has a 210-acre space while Giga Berlin will eventually have a space of around 710 acres. These factories – often including office spaces too – are some of the most remarkable manufacturing facilities, generating thousands of employment opportunities and massive revenues – both of which a state government does not want to lose out to.
(Also read: Elon Musk to meet PM Modi on his India visit)
In India, it is reported that Tesla is looking at tying up with Reliance to help it establish a manufacturing base and assist in creating an ecosystem around it. Neither of the companies has commented on this yet.
State of states wooing Tesla
A number of Indian states have expressed a deep desire to invite Tesla. Various reports suggest Gujarat has the best chance of pulling in the American company, followed by Maharashtra. The southern states of Telangana and Karnataka are also competing for Musk’s attention while Tamil Nadu has pointed to several car manufacturing bases in its territory to underline the ecosystem it has. The region around Chennai is often referred to as ‘Detroit of India’ as it has manufacturing facilities for companies like Hyundai, Nissan, Renault and BMW.