Tesla is reportedly scouting for a site to establish its first manufacturing facility in India and while the American electric vehicle (EV)-manufacturing giant will initially enter the country by bringing in its cars through the import route, a local manufacturing base is likely to help it establish a firmer foothold here. A new report now highlights that Tesla may be in talks with Reliance Industries for this facility.

A report in The Hindu's Business Line, crediting sources, points to talks that are in the initial stages between officials of Tesla and Reliance for a possible joint venture between the two companies. The report quotes sources as saying that the talks are in the initial stage and have been underway for around a month.

If such a partnership does come to fruition, it is possible that Reliance helps Tesla in establishing its manufacturing base in India as well as assist in creating an allied ecosystem. There is no confirmation on this - or on the talks - from either of the two companies and once again, discussions are believed to be in a nascent stage at present.

India in sight for Tesla

That Tesla is coming to India is confirmed. But the questions at present pertain to when, how and with what. The company has started manufacturing right-hand-drive EVs at its German facility for the Indian car market and its initial batches of EVs for India will come in via import route.

The Government of India has allowed for a reduction in import duty on EVs as long as manufacturers commit to an investment of at least ₹4,150 crore in India and a deadline of three years to start locally manufacturing EVs. Companies will also have to use 35 per cent of components from local markets to build these cars.

For CEO Elon Musk, India appears a green horizon even if the electric car market here remains small at present. The potential for the segment is huge even as there is an overall slowdown in sales growth patterns for EVs across the world at present.

Read Also: ‘a shame’: ex tesla ceo roasts elon musk for purportedly dropping low-cost ev plans