Will Tesla Set Up Its EV Plant In Maharashtra?

Maharashtra is hyperventilating over Elon Musk’s plans to invest US $2 to $3 billion, in the state, probable announcement during his visit to India. According to informed sources, “Maharashtra’s Ratnagiri (Konkan belt) or Vidarbha region (in north) may find precedence over Mumbai Metropolitan Region (MMR) that boasts an automobile cluster near Pune city. Tesla’s plan to manufacture electric vehicles by itself is not news as much as the resultant disruption in the new technology for batteries these EVs will use. Already, Tata Motors enjoys first mover advantage in this specialized automobile sector within the conventional technology batteries, with its Exon and Punch EV models enjoying advantage of competitive pricing also.” Additionally, recent discoveries of lignite deposits by the Neyveli Lignite Corporation NLC, a private limited company of the Union Government of India, may also synergise with the forward foray in India’s EV segment. There is also a sharp political inclination to house the Tesla EV project within Maharashtra that recently lost out to Gujarat on the mega Vedanta-Foxconn semiconductors investment. A BJP source insists, “The then MVA government under Uddhav Thackeray had set a pre-condition of government primacy over appointing contractors related to the project that soured the deal. Subsequently, after heading into Gujarat Foxconn parted ways with Vedanta but the project moved towards financial closure.” The BJP leader says that with state assembly elections scheduled in Maharashtra in November 2024, the entry of Tesla in the state, would help to enthuse industrial growth and progress while dissipating any residual bad aftertaste over the Vedanta exit two years ago.