Tesla to pick Gujarat as base for its India operations: Reports

After finally making its entry in India by registering itself as Tesla India Motors and Energy Pvt in Bengaluru, it is now reported that the EV giant might set its base for operations in the state of Gujarat.

Gujarat has emerged as a major hub for automobile giants, especially electric vehicles. That is one of the reasons why the state is making a strong pitch for Tesla to set up its base here, as per a report. The Gujarat government is holding discussions with Elon Musk's EV manufacturer and has also assured it of providing all possible assistance and incentives for operating from its port cities. "Major electric car manufacturers and vehicle battery manufacturers are setting up facilities in Gujarat. We are hopeful that like other global automakers, Tesla will prefer Gujarat," an official was quoted as saying.

Setting a base in Gujarat could prove to be beneficial for Tesla as having a port location would be a major advantage in terms of importing its vehicles and assembling them. Another report states that one of the two major ports of the state - Kandla and Mundra are being considered as possible locations for Tesla's operations.

The EV giant will set up a Research and Development centre in Bengaluru and has appointed Vaibhav Taneja, Venkatrangam Sreeram and David Jon Feinstein as the directors of Tesla India. Upon its India entry, CEO Elon Musk reacted saying, "As promised," to a tweet mentioning Tesla's plans for the multi-billion dollar market here.

Reports also suggest that the Karnataka government has also offered land to Tesla in Tumkur which is located on the outskirts of Bengaluru city in order to set up a manufacturing facility.

It is expected that the carmaker's best-selling and most affordable Model 3 electric car will be its first offering in India and will go on sale by the end of the first quarter of FY 2021-22. Pre-bookings are expected to be initiated soon.