AHMEDABAD: The Gujarat government is optimistic that US automaker Tesla Inc will opt for the state to set up its first factory in the country, Gujarat health minister and state government spokesperson Rushikesh Patel said on Thursday.
Patel said Tesla officials have been looking at various states to establish a vehicle manufacturing facility. “The company officials have visited Gujarat, and indications suggest a preference for the state as the location for their first factory in the country. Our team is in ongoing communication with Tesla officials, and we remain hopeful of an announcement in this regard soon,” he said.
The minister didn’t elaborate. A government official later said Sanand, a short ride from Ahmedabad, which is considered the automobile hub of Gujarat, was a potential location that was visited by Tesla officials.
A Bloomberg report last week said Maharashtra and Tamil Nadu were the other locations that were being considered because the three have well-established ecosystems for electric vehicles and exports.
The state government expects Tesla to announce its decision at the upcoming Vibrant Gujarat Summit in Gandhinagar next month.
It was at the summit back in January 2007 that Prime Minister Narendra Modi, who was then the state’s chief minister, proposed to Ratan Tata to relocate its proposed auto factory from Singur to Gujarat. This event preceded the shift to Gujarat by Tata Motors, leading to the establishment of Sanand as the country’s burgeoning auto hub, attracting investments from major companies such as Maruti Suzuki, Ford, and MG Motors.
The Bloomberg report also said India was looking at allowing the US automaker to ship its electric cars to the country from next year and set up a factory within two years. It said Tesla would commit an initial minimum investment in any plant of around $2 billion and would look to increase domestic purchase of auto parts to as much as $15 billion. The US automaker would also seek to make some batteries in India to bring down costs.
Gujarat government officials said Tesla will not be given any special incentive and will opt for Gujarat because of the conducive business environment, skilled workforce and logistics support including well-developed ports.