Tesla Plans Site Scouting In India For New EV Plant: Report

American EV giant Tesla Inc TSLA will reportedly send a team to India in late April to identify possible locations for a proposed EV plant.

What Happened: The Indian states in focus include those with existing automotive manufacturing such as Maharashtra, Gujarat, and Tamil Nadu, Financial Times reported, citing two unnamed people familiar with the matter.

Haryana is also in the frame of consideration as it has automaker plants and is close to the country’s national capital New Delhi, one of the sources told the publication. The second source, however, noted that the other three states have ports allowing them to export cars with ease.

Tesla will initially invest $2 billion to $3 billion in the factory, a source added.

Why It Matters: The development comes on the heels of India lowering import tariffs on more expensive EVs from automakers who commit to making them within the country in three years.

Tesla is currently also building a plant in Mexico which will serve as a future home to Tesla’s lower-priced next-gen vehicle expected to be priced at $25,000. However, production is expected to start at the factory only in 2026.

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