Tesla and Reliance are in discussions to establish EV production division in India

Tesla and Reliance Industries are in discussions about forming a potential joint venture to construct an EV manufacturing plant in the country. It is anticipated that building India's electric car capacity would be RIL's goal in the joint venture. The conversations have lasted more than a month and are still in the early stages.

It is expected that RIL may play a significant hand in establishing the manufacturing facility and the allied ecosystem for Tesla in India. In 2023, RIL, in partnership with Ashok Leyland, launched India’s first hydrogen internal combustion engine-powered heavy-duty truck. RIL also unveiled removable and swappable batteries for EVs last year.

Tesla is said to have committed $2 billion to its upcoming plans in India. The company has been looking at multiple locations, including Gujarat and Maharashtra, for setting up the plant. Sources said that Maharashtra could emerge as the preferred location. Tesla plans to use the facility for domestic and export purposes, and hence, it may prefer a location suitable for port facilities.

In a X (formerly Twitter) Spaces session with Nicolai Tangen, CEO, Norges Bank Investment Management, Elon Musk, CEO, Tesla said: “India is now the most populous country in the world, based on population. India should have electric cars just like every other country has electric cars. It’s a natural progression to provide Tesla electric vehicles in India,” thereby confirming Tesla’s entry into India.

Senior officials of Tesla are expected to visit the country to finalise the plant location in a month or so and crystallise on the joint venture with RIL. Sources add that since the JV talks with RIL aren’t exclusive, Tesla may scout for another domestic partner if ongoing talks don’t fructify.