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Andhra Pradesh’s Economic Development Board (EDB) has made the pitch before Tesla for setting up the plant in the state highlighting its port connectivity and abundant land.
Tesla is expected to start its retail operations in India from April.
Even as Tesla is expected to enter India this year, Andhra Pradesh is once again making efforts to attract the Elon Musk-owned company to set up its manufacturing unit in the southern part of the state, according to The Economic Times. The report, citing highly placed sources, said the state’s Economic Development Board (EDB) has made the pitch before Tesla for setting up the plant in the state highlighting its port connectivity and abundant land.
The new Telugu Desam Party (TDP) government in Andhra Pradesh initiated talks with Tesla in October 2024, when its minister Nara Lokesh had met the company’s Chief Financial Officer Vaibhav Taneja during his US visit.
Following Prime Minister Narendra Modi’s meeting with Musk and Tesla’s ongoing hiring spree in India, Andhra Pradesh has renewed its efforts to secure the investment, According to the ET report.
The report said the state is offering an attractive package of incentives, including ready land parcels, to differentiate itself from other states vying for Tesla’s attention.
“The port access will help the company in importing cars. Also, if it sets up a manufacturing plant in southern Andhra Pradesh, there is a readymade ecosystem of auto companies, battery manufacturers, and ancillary suppliers here,” a source told The Economic Times.
According to reports, Tesla is expected to start its retail operations in India from April. The US-based company has selected locations for two showrooms in New Delhi (Aerocity) and Mumbai (Bandra Kurla Complex).
Tesla will initially import vehicles to sell in India from its German facility and may set up a manufacturing unit in India if it first succeeds with imported vehicles in the country.
Andhra Pradesh is also emphasizing that South India is a key market for EVs, accounting for nearly 60% of India’s four-wheeler EV sales, spread across Kerala, Telangana, Tamil Nadu, and Karnataka.
Meanwhile, the state has also made efforts in the past as well to attract the company. In 2017, Chandrababu Naidu had signed an MoU with Tesla. Musk had committed to provide tech expertise for two solar energy storage units in Rayalaseema.
