Tesla Eyes Indian Market, Enters Talks With Reliance Industries, Says Report

As Tesla sets its sights on the Indian market, the EV giant is in talks with Reliance Industries to explore a possible manufacturing partnership
A Tesla charger
A Tesla charger Smith Collection/Gado/Getty Images

Tesla is reportedly looking for a local collaborator to establish its operations in India. The American electric vehicle company is in discussions with Ambani-led Reliance Industries regarding a potential partnership to construct a manufacturing facility in the nation.

While this might reflect RIL's entry into the automobile space, sources indicate that the aim of the joint venture is solely to enhance the capabilities of India's EV market, as per a report by the Hindu Businessline.

"The role of RIL hasn’t been crystalised yet, it is expected that the Indian conglomerate may play a significant hand in establishing the manufacturing facility and the allied ecosystem for Tesla in India,” according to a source cited in the report. Last year RIL had teamed up with Ashok Leyland to roll out India's very first heavy-duty truck running on a hydrogen internal combustion engine. The company also introduced removable and swappable batteries for electric vehicles.

Tesla is set to invest $2 billion in its forthcoming ventures in India. The automobile company has been scouting several locations, including Gujarat and Maharashtra, for its manufacturing plant.

In about a month's time, senior officials from Tesla are expected to visit India to determine the plant location and finalise the joint venture with RIL. Source mentioned in the report suggests that while discussions with RIL for the joint venture are ongoing, they are not exclusive. This might signal that Tesla is exploring other domestic partnerships as well if the current negotiations do not lead to an agreement.

Related Stories

No stories found.
Outlook Business & Money