Maharashtra offers land to Tesla for making its EVs
What's the story
The government of Maharashtra has pitched two possible locations, Chakan and Chikhali near Pune, for Tesla's next electric vehicle (EV) manufacturing facility.
The move comes as Elon Musk's company steps up its hunt for an appropriate site in India.
However, the decision is still pending as Tesla considers important factors like accessibility to ports before settling on a location.
Significance
Chakan: A prominent automobile hub
Chakan is known as one of India's biggest automobile hubs, home to global giants such as Mercedes-Benz, Tata Motors, Mahindra & Mahindra, Volkswagen, and Bajaj Auto.
The area has a strong supplier network and infrastructure.
Tesla already has an office in the area which could easily support its Indian operations if the company decides to set up its factory here.
Tesla EVs could arrive this April and carry a price tag of around ₹21 lakh (ex-showroom).
Recruitment drive
Workforce expansion and talent acquisition in India
Along with its manufacturing plans, Tesla is also ramping up its workforce in India.
The company recently posted 13 job openings on LinkedIn for positions in sales, vehicle service, customer support, and business operations based out of Mumbai and Delhi.
Tesla also wants to poach top executives from Tata Motors, as per an Economic Times report.
Industry insiders claim the Musk-led firm is reaching out to experienced professionals in the EV production and supply chain category to fortify its team.
Market strategy
Renewed focus on Indian market
Prashanth Menon, the senior executive who previously headed Tesla's India operations before being moved to a Netherlands project, has returned.
This move signals a renewed focus on Tesla's entry into the Indian market.
However, the company's foray into the Indian market has been marred with challenges, mostly due to high import taxes.
Past hurdles
Tesla's previous attempts and future prospects in India
In 2021, Tesla had acquired a shop and office space in Mumbai but its plans were thwarted after it failed to convince the Indian government to lower import duties on Tesla vehicles.
The firm had lobbied for tax reductions on fully assembled cars under $40,000, seeking a drop from 60% to 40%, but the Centre refused to make exceptions.
Despite these setbacks, Tesla's recent efforts show a strong determination to establish a presence in India.