Elon Musk’s Tesla is considering Maharashtra as a potential location for its electric vehicle (EV) manufacturing plant in India. The Maharashtra government has offered land in Chakan and Chikhali, two major automobile hubs near Pune, to attract Tesla’s investment.
Chakan is home to leading automobile manufacturers, including Mercedes-Benz, Tata Motors, Mahindra & Mahindra, Volkswagen, and Bajaj Auto. The region boasts a strong supplier network and infrastructure, making it a strategic choice for Tesla’s operations.
Tesla’s Hiring Spree and Interest in Tata Motors Talent
Tesla has begun expanding its workforce in India, posting 13 job openings for roles in vehicle service, sales, customer support, and business operations. These positions, based in Mumbai and Delhi, indicate that Tesla is gearing up to establish a sales and service network in the country.
Beyond public job postings, reports suggest Tesla is actively looking to recruit top executives from Tata Motors, India’s leading EV manufacturer. The company is seeking experienced professionals in EV production and supply chain management to strengthen its presence in India.
A key figure in Tesla’s India strategy is Prashanth Menon, a senior executive who previously led Tesla’s India operations. His return signals a renewed focus on Tesla’s expansion plans.
Challenges Tesla Has Faced in Entering the Indian Market
Tesla has long been interested in entering India but has encountered multiple regulatory hurdles. In 2021, the company’s plans were stalled due to high import taxes on fully assembled EVs. Tesla had requested a reduction in duties for vehicles under $40,000, but the Indian government refused to make exceptions.
Despite these challenges, Tesla has continued discussions with Indian authorities, particularly regarding local component sourcing. In 2023, the company leased office space in Pune, fueling speculation about its entry into the Indian market. A breakthrough came in 2024 when the Indian government introduced a new EV policy, offering tax incentives for companies investing at least $500 million in local manufacturing.
Will Tesla Set Up Its Factory in Maharashtra?
If Tesla finalizes Maharashtra as its factory location, the state could become a key player in the company’s global manufacturing network. However, Tesla is still evaluating key factors such as proximity to ports before making a final decision.
With Tesla’s renewed focus on India, the coming months will be crucial in determining whether Maharashtra secures the investment or if another state emerges as a stronger contender.
