In a strategic move aimed at expanding its global presence, tesla Inc., under the leadership of CEO Elon Musk, is turning its focus towards india, signalling a significant shift towards electric vehicle (EV) manufacturing and distribution in the region. Musk highlighted India's importance in Tesla's expansion strategy during a recent discussion with Nicolai Tangen, CEO of Norges bank Investment Management, citing the country's growing population and the global trend towards electric vehicles.

India's emergence as the most populous country in the world underscores the need for electric cars, according to Musk, who sees it as a natural progression in line with global electrification trends. He envisions a future where electric vehicles dominate roads, replacing traditional combustion engines.

With its sights set on india, tesla is actively exploring potential locations for a state-of-the-art manufacturing facility, with maharashtra and gujarat emerging as potential hosts. The proposed investment, estimated between $2 to $3 billion, aims to cater to both domestic and international markets with Tesla's advanced electric vehicles.

Tesla's move aligns with India's ambitious EV policy, offering incentives for global players to establish manufacturing bases in the country. This policy, promoting self-reliance and technological advancement, includes favourable customs duty regimes and mandates for domestic sourcing of vehicle components.

Tesla's entry into india has the potential to revolutionize the country's EV landscape, in line with government objectives to foster advanced technology adoption and promote domestic manufacturing. Musk's planned visit to india in 2024, following an encouraging meeting with prime minister Narendra Modi, signals mutual interest in boosting foreign investment in the EV sector.

Union minister for Commerce and Industry, piyush Goyal's recent visit to Tesla's facility in california highlighted the growing synergies between indian auto component suppliers and the global EV giant. This underscores the mutual benefits of Tesla's expansion into india, not only for the company but also for the local automotive industry.

As tesla prepares to enter the indian market, anticipation mounts over the potential impacts on the country's automotive landscape and its standing in the global EV manufacturing sector.