As Tesla prepares to enter India in 2025, Andhra Pradesh is intensifying its efforts to persuade Elon Musk’s company to set up a manufacturing unit in the southern region of the state, according to a report by The Economic Times. The state’s Economic Development Board (EDB) has made a fresh pitch to Tesla, highlighting its strategic port connectivity, land availability, and an established EV ecosystem.

Andhra Pradesh’s Fresh Push for Tesla’s Investment

The newly elected Telugu Desam Party (TDP) government has been proactive in bringing Tesla to Andhra Pradesh. Reports suggest that state IT and Industries Minister Nara Lokesh initiated discussions with Tesla’s Chief Financial Officer Vaibhav Taneja during his visit to the United States in October 2024.

With Prime Minister Narendra Modi’s meeting with Elon Musk and Tesla’s ongoing recruitment efforts in India, Andhra Pradesh is making renewed attempts to secure Tesla’s investment. The state is reportedly offering an attractive package of incentives, including ready land parcels, to stand out among competing states such as Maharashtra, Gujarat, and Tamil Nadu.

Why Andhra Pradesh? The State’s Strong Pitch to Tesla

A senior government official explained the advantages of choosing Andhra Pradesh:

“The port access will help the company in importing cars. Also, if it sets up a manufacturing plant in southern Andhra Pradesh, there is a ready-made ecosystem of auto companies, battery manufacturers, and ancillary suppliers here.”

Key Advantages of Andhra Pradesh for Tesla

Port Connectivity – Seamless import-export operations for vehicles and components
Land Availability – Large industrial land parcels readily available for Tesla’s needs
EV Ecosystem – Presence of auto companies, battery manufacturers, and component suppliers
Growing EV Market – South India accounts for nearly 60% of India’s four-wheeler EV sales, spread across Kerala, Telangana, Tamil Nadu, and Karnataka

Tesla’s India Entry Plans: Retail & Future Manufacturing

Tesla is expected to begin its retail operations in India by April 2025. The company has finalized locations for its first two showrooms in:

New Delhi (Aerocity)
Mumbai (Bandra Kurla Complex)

Initially, Tesla will import vehicles from its German facility for sale in India. The company may consider setting up a manufacturing unit in India only if its imported vehicles gain traction in the Indian market.

Andhra Pradesh’s Previous Efforts to Woo Tesla

This is not the first time Andhra Pradesh has attempted to bring Tesla to the state. In 2017, then-Chief Minister Chandrababu Naidu had signed a Memorandum of Understanding (MoU) with Tesla. As part of the agreement, Elon Musk had committed to providing technological expertise for two solar energy storage units in Rayalaseema.

With Tesla’s India entry just around the corner, Andhra Pradesh is making a strong case for hosting its first manufacturing plant. While Tesla is still evaluating its options, the state’s port connectivity, industrial ecosystem, and strong EV market potential could play a crucial role in influencing Musk’s decision.