Tesla Eyes Indian Operations, in Talks with Reliance for Joint Venture: Reports

Global automaker Tesla is reportedly seeking a local partner to establish its operations in India, as per a report by The Hindu Businessline on April 9. Sources within the electric vehicle giant revealed that the company is engaged in discussions with Reliance Industries to form a joint venture for setting up a manufacturing facility in the country.

According to an individual familiar with the matter, the talks are in preliminary stages and have been ongoing for over a month. However, it's emphasized that Reliance Industries' involvement should not be interpreted as its entry into the automobile sector. The primary objective of the joint venture for Reliance Industries is to develop capacities for electric vehicles in India.

Another credible source involved in the matter stated that while Reliance's exact role is yet to be defined, it is anticipated that the conglomerate will play a significant role in establishing the manufacturing facility and the associated ecosystem for Tesla in India.

Earlier this month, the Financial Times reported that Elon Musk had dispatched a team to India in April to scout for potential sites for a proposed $2 billion to $3 billion electric car plant. Additionally, Rajesh Kumar Singh, the secretary of the Department for Promotion of Industry and Internal Trade, stated in an interview with Bloomberg that the ball is now in Elon Musk's court to announce their manufacturing plans. Furthermore, Bloomberg reported in November 2023 that Tesla aims to increase purchases of auto components from India, potentially reaching up to USD 15 billion.

Tesla's potential entry into the Indian market through collaboration with Reliance Industries signifies a significant step towards the expansion of electric vehicle infrastructure and manufacturing capabilities in the country.