Tesla on Tamil Nadu’s radar ahead of Elon Musk’s India visit

The US-based company is looking for a site to build a factory in India for manufacturing electric vehicles, with an investment worth approximately $2 billion.

The Tamil Nadu government is set to aggressively market the state as a potential manufacturing site for global electric vehicles (EV) giant Tesla ahead of Elon Musk’s visit to India, reported Bloomberg News.

The US-based company is looking for a site to build a factory in India for manufacturing electric vehicles, with an investment worth approximately $2 billion.

Tamil Nadu’s Minister for Industries, Investment Promotion & Commerce TRB Rajaa told the publication that the state “will be pitching for all opportunities of electric vehicle manufacturing from all global car majors”.

He said the state has the country’s “best electric vehicle policies and ecosystem”.

Rajaa added that Tamil Nadu is “already the automotive capital of the country and now “we will aim at making the state the EV capital too”.

The minister’s statement comes ahead of Elon Musk’s planned visit to India, during which he will meet with Prime Minister Narendra Modi to discuss Tesla’s plans for starting India operations.

The meeting will be important for both Tesla and India.

For Tesla, establishing itself in India could open the doors to a large customer base amid rising demand for electric vehicles. And for India, it will be a major opportunity to lure investment from the world’s best-known EV maker, which is looking to diversify operations beyond China.

Chennai, also known as the Detroit of Southern Asia, already houses facilities such as Nissan Motor Co, Renault SA, Hyundai Motor Co. and BMW AG, including the auto parts supply chains that feed them.

This puts Chennai in the front row to attract Tesla. Despite its strong credentials, it will face stiff competition from other Indian states who are also formulating plans to bring Tesla home.