Reliance Industries May Partner with Tesla for Indian EV Venture (Image Source: L: iStockphoto, R: IANS)
Tesla Inc is reportedly engaged in initial discussions with Reliance Industries Ltd. regarding a potential collaboration to establish an electric vehicle (EV) manufacturing facility in India, as reported by The Times of India quoting Hindu BusinessLine.
Although the specific role of Reliance has not been finalised, sources suggest that Mukesh Ambani’s conglomerate is expected to play a significant part in assisting Tesla in setting up the factory and its associated operations.
Senior officials from Tesla are anticipated to visit India within a month to finalise the location of the plant and the terms of the joint venture.
When approached by Bloomberg News, a spokesperson for Reliance declined to comment on the report, while a representative from Tesla did not immediately respond to a request for comment.
Elon Musk, Tesla’s Chief Executive Officer, had previously indicated plans for a substantial investment in India, coinciding with the government’s efforts to attract foreign EV brands to establish manufacturing facilities in the country. According to Bloomberg News, negotiations were underway in November for Tesla to make an initial minimum investment of about USD 2 billion to set up a plant. Tesla also expressed intentions to increase procurement of auto parts from India, potentially reaching USD 15 billion.
These initiatives are aimed at attracting investment from global firms to accelerate India’s transition to environmentally friendly vehicles. However, despite these efforts, EVs accounted for only 2.3 per cent of total passenger vehicle sales last year, according to BloombergNEF, with high prices and limited charging infrastructure being significant barriers to wider adoption.
