After Gujarat, Andhra Woos Tesla For EV Manufacturing Facility

Amid the EV manufacturing push in the country, Andhra Pradesh is reportedly making efforts to attract Elon Musk’s Tesla to set up its manufacturing facility in the state with ready land parcels. 

The race to secure Tesla’s investment in India’s electric vehicle (EV) sector is intensifying as Andhra Pradesh emerges as the latest state vying for the EV giant’s manufacturing facility. Following reports of Tesla’s interest in setting up a plant in Gujarat, Andhra Pradesh has stepped up efforts to attract the automaker, positioning itself as an ideal destination for Tesla’s expansion in the Indian EV market.

Tesla’s Growing Interest in India

Tesla’s investment in India has been a topic of discussion for years, with the company looking to establish a strong presence in one of the world’s fastest-growing EV markets. The company has been in talks with multiple state governments to set up its first manufacturing plant, with Gujarat initially leading the race. However, Andhra Pradesh is now aggressively pitching itself as a favorable alternative, highlighting its strategic location, industrial ecosystem, and investor-friendly policies.

Also Read: India Caps EV Charging Investment for Tariff Relief as Tesla Eyes Market Entry

Andhra Pradesh offers a compelling case for Tesla’s EV manufacturing facility. The state boasts well-developed infrastructure, robust logistics connectivity, and a skilled workforce. It has also been proactive in promoting electric mobility and sustainability initiatives, making it a suitable candidate for Tesla’s investment. Moreover, Andhra Pradesh’s capital region and industrial corridors provide ample space for setting up a state-of-the-art Tesla manufacturing plant. The government’s investor-friendly approach, coupled with incentives for the EV sector, further strengthens its appeal to Tesla.

Competition with Gujarat

While Gujarat remains a strong contender with its established automotive manufacturing ecosystem, including the proposed Gujarat Tesla plant, Andhra Pradesh is positioning itself as a cost-effective and strategically located alternative. The competition between the two states underscores the importance of Tesla’s entry into the Indian EV market and its potential economic impact.

The report adds that Tesla could first import pre-made vehicles before establishing a production plant in Andhra. The state has reminded that South India prides itself on the most EV four-wheeler sales in India. Data indicates that approximately 60% of EV car sales are in four southern states of Kerala, Telangana, Tamil Nadu, and Karnataka.

The Indian EV market is witnessing rapid growth, driven by government policies, rising consumer interest, and advancements in EV technology. Tesla’s manufacturing plant in India would not only boost local production but also reduce import costs, making Tesla vehicles more accessible to Indian consumers. The country’s focus on clean energy, battery production, and EV infrastructure development aligns well with Tesla’s long-term goals.

As Tesla weighs its options, both Gujarat and Andhra Pradesh remain key contenders. The final decision will likely depend on factors such as ease of doing business, government support, and overall feasibility for long-term operations in India. If successful, the Andhra Pradesh Tesla deal could position the state as a major hub for electric vehicles in India, fostering job creation, investment inflows, and technological advancements in the sector.