Tesla in talks with Reliance for EV manufacturing plant?

Tesla, the electric vehicle (EV) manufacturing giant, is reportedly in discussions with Reliance Industries Limited (RIL) to collaborate on establishing an EV manufacturing plant in India. 

This development follows recent reports indicating Tesla’s exploration of potential sites across India for its manufacturing facility. 

According to sources, the talks between Tesla and Reliance are still in the preliminary stages and have been ongoing for over a month. However, it’s emphasized that RIL’s involvement in the joint venture should not be interpreted as its entry into the automobile sector. Instead, RIL aims to contribute to building capacities for electric vehicles in India through this partnership. 

“Talks are at initial stages and have been ongoing for over a month,” said a person aware of the development. The source said the move shouldn’t be construed as RIL’s entry into the automobile space. RIL’s objective in the joint venture is to build capacities for electric vehicles in India.

“While the role of RIL hasn’t been crystalised yet, it is expected that the Indian conglomerate may play a significant hand in establishing the manufacturing facility and the allied ecosystem for Tesla in India,” said another highly placed source with knowledge of the matter. 

In 2023, RIL, in partnership with Ashok Leyland, launched India’s first hydrogen internal combustion engine-powered heavy-duty truck. RIL also unveiled removable and swappable batteries for EVs last year. 

While the exact role of RIL in the venture has not been finalized, it may play a significant part in establishing the manufacturing facility and supporting ecosystem for Tesla in India. 

Tesla has reportedly allocated $2 billion for its ventures in India, intending to set up a manufacturing plant in either Gujarat or Maharashtra. Although Maharashtra, with its port facilities, is a potential preferred location, no final decision has been made. 

Senior officials from Tesla are expected to visit India soon to determine the plant’s location and discuss potential collaboration with RIL. However, if the negotiations with RIL do not materialize, Tesla may consider alternative domestic partners for its Indian operations.