After the company finally entered India by registering as Tesla India Motors and Energy Pvt in Bangalore, there are now reports that the Electric car producer Tesla may set up an operating base in Gujarat.
According to the report, Gujarat has become a major hub for automobile giants, especially electric vehicles, which is one of the reasons why the state is working hard to get Tesla to locate it here.
Electric car manufacturer Elon Musk also assured him that he will provide all possible help and incentives to start a business in his port city.
“Large manufacturers of electric vehicles and car batteries are opening factories in Gujarat. We hope that Tesla will choose Gujarat like other global automakers,” the official said.
Building a base in Gujarat can pay off for Electric car producer Tesla
Since nearby ports have great advantages in loading and assembling vehicles, another document claims that Kandla and Mundra, one of the main ports in the state, are regarded as viable locations for Tesla’s operations.
The electric car giant will set up a research and development center in Bangalore and appoint Vaibhav Taneja, Venkatrangam Sriram, and David John Feinstein as directors of Tesla India.
After entering India, CEO Elon Musk responded with a “commitment” to a tweet mentioning Tesla’s multi-million dollar market plan.
According to reports, the Karnataka government also provided Tesla’s land in Tumkul, a suburb of Bangalore, for its manufacturing plant.
It is reported that areas close to either of the two major ports of Kandla and Mundra in the state of Gujarat are being planned as possible locations for the Tesla plant. Having a plant closer to a port would help the company save on logistics while it will also adhere to Prime Minister Narendra Modi’s vision of port-led development.
Gujarat is on Electric car producer Tesla’s radar
According to industry insiders, the state has become a production center for cars and auto parts that Tesla can use.
In addition, the company should be able to save considerable logistics costs by setting up factories near the port.
“Tesla will have huge import and assembly needs. Therefore, the location of the factory close to the land port will greatly save logistics costs,” said S. Sittarasu, head of the business development group at Deendayal Port Trust.
The potential factory can also serve as Tesla’s Asian manufacturing center, from where it can enter the Gulf market, including Dubai, due to its proximity to these locations and lower logistics costs.
In addition, Tesla can benefit from the central government’s production incentive system (PLI), GST incentives, and other incentives from the Gujarat government.
“All these 5-6 parameters make Kandla an ideal place for Tesla, whether it wants to import, assemble, manufacture or export cars,” Sittarasu said, adding that Deendayal Port will soon promote the American manufacturer to market. project.
Kandla is expected to face competition from the nearby port Mundra, which is the largest port in India and is operated and operated by Adani Ports and Special Economic Zone Ltd (APSEZ).
Mundra’s strength also lies in its extremely important land availability. As a private port, it is also connected to a dedicated freight corridor (DFC) to provide depth and freedom in setting tariffs.
The benefits of building facilities near Port
In Gulf of Kutch will also make it easier for Tesla to enter the Middle East market due to shorter delivery distances. The central government also grants special benefits to the Gujarat government in the form of goods and services tax benefits. All these factors make Port Candela an ideal destination for Tesla, whether it is importing parts, assembling, manufacturing, or exporting cars.
The Mundra location in Gujarat is also a possible location. It is the country’s largest production port and is operated by Adani Ports and Special Economic Zone Co., Ltd. (APSEZ).
The availability of land and the fact that it is connected to a dedicated freight corridor (DFC) is in your favor.
Electric car producer Tesla will launch its first Model 3 electric sedan in India, and will soon launch the Model Y crossover SUV. The estimated starting price is Rs 5 million.