According to many media reports, Electric Vehicle (EV) manufacturer Tesla is expected to establish a manufacturing facility in Gujarat next year and expand into India.

The electric vehicle manufacturer is nearing the end of negotiations to open its first car manufacturing facility in India.

Maruti Suzuki, tata motors and other automakers have manufacturing facilities in Gujarat. Sanand, Becharaji, and Dholera are rumoured to be potential locations for Tesla’s manufacturing facility. Due to their proximity to Gujarat’s Kandla-Mundra port, places like Sanand could see an increase in exports from the EV manufacturer.

As per multiple media reports, Gujarat has become a top choice for Tesla to locate its car production facility, in part due to the state government’s regulations as well as the region’s accessibility to ports for the company’s products to be exported.

Gujarat Health Minister Rushikesh Patel was upbeat about Elon Musk’s investment in the state during a recent Cabinet session. During the address, he drew a link between the state’s awareness and alignment with Elon Musk’s overarching goals.

If Tesla successfully fulfils all the conditions to set up the manufacturing facility in India, then Fully assembled vehicles may be imported by it at a concessional import charge of about 15–25%, which is significantly less than the current 100 percent on such imports.

In past Indian EV manufacturers, like Tata Motors and M&M, questioned why Tesla should receive any preferential treatment considering that they are currently producing cars and electric vehicles in India.

Neither the state government nor the EV manufacturer have made any formal announcements regarding the issue. However, it is expected that the announcement of Tesla’s manufacturing facility in the state will be made at the upcoming Vibrant Gujarat Summit, which is set for next month.