Andhra Pradesh woos Tesla for EV manufacturing unit
What's the story
Andhra Pradesh is stepping up its efforts to woo Elon Musk's Tesla, to set up an electric vehicle (EV) manufacturing unit in the state.
The state's Economic Development Board (EDB) has been pitching Andhra Pradesh as the ideal destination for Tesla, highlighting its port connectivity and land availability.
The talks were first held in October 2024, when state minister Nara Lokesh met Tesla's CFO Vaibhav Taneja during a US visit.
Investment incentives
Andhra Pradesh offers incentives to attract Tesla
In a bid to secure Tesla's investment, Andhra Pradesh has renewed its efforts after PM Narendra Modi met Musk and Tesla's recruitment drive in India.
The state has prepared an attractive package of incentives, including ready land parcels, to set itself apart from other states vying for Tesla's attention.
The company plans to sell EVs in India as early as April. It may initially focus on importing cars from Germany before establishing a full-fledged manufacturing facility.
Strategic benefits
State's strategic advantages for Tesla's operations
A source told The Economic Times that the port access would enable Tesla to import cars.
Further, if a plant is set up in southern Andhra Pradesh, it would benefit from an ecosystem of auto companies, battery manufacturers, and ancillary suppliers.
The state is also pitching that South India is a major EV market, contributing nearly 60% to India's four-wheeler EV sales across Kerala, Telangana, Tamil Nadu and Karnataka.