Reliance and Tesla are in talks to set up an Indian EV manufacturing arm facility

It’s possible that Tesla is looking for a local partner to launch its business in India. According to well-placed sources, the US leader in electric vehicles is in discussions with Reliance Industries about a potential joint venture to establish the manufacturing plant there.

An individual with knowledge of the situation stated, “Talks are at their initial stages and have been ongoing for over a month.” According to the source, this action shouldn’t be seen as RIL’s entrance into the auto industry. Building India’s electric car capacity is RIL’s goal in the joint venture.

Another strategically located person with knowledge of the situation stated, “While the role of RIL hasn’t been solidified yet, it is expected that the Indian conglomerate may play a significant hand in establishing the manufacturing facility and the allied ecosystem for Tesla in India.” India’s first heavy-duty vehicle with an internal combustion engine running on hydrogen was introduced by RIL and Ashok Leyland in 2023. Moreover, RIL introduced swappable and removable batteries for EVs last year.

The arrival of Tesla:

According to reports, Tesla has committed $2 billion to its future plans in India. The business has been considering a number of places to locate the factory, including Maharashtra and Gujarat. According to sources, Maharashtra might end up being the chosen site. According to the source that was previously cited, “Tesla plans to use the facility for domestic and export purposes, so it may prefer a location suitable for port facilities.”

During an X (formerly Twitter) Spaces session, Elon Musk, the CEO of Tesla, stated that India is currently the world’s most populous country in terms of population, together with Nicolai Tangen, CEO of Norges Bank Investment Management. Just like every other nation, India has to have electric vehicles. Tesla’s arrival into India is confirmed by the statement, “It’s a natural progression to provide Tesla electric vehicles in India.”

In a month or two, senior Tesla officials will be heading to the nation to finalize the plant location and finalize the joint venture with RIL. According to sources, Tesla may look for a different domestic partner if the current negotiations with RIL don’t work out because the JV talks aren’t exclusive.