Setting up the Tesla plant near either of these ports would help the electric vehicle company save on logistics costs
Following years of speculation, Tesla Inc. has finally entered India. Elon Musk has registered the company in Bengaluru with a new R&D unit at Lavelle Road. The electric car company has been registered with the Registrar of Companies on January 8, 2021 with authorized capital to the tune of Rs.15 lakhs and paid up capital of Rs.1 lakh.
Tesla India Motors and Energy Ltd has been opened at the City Center and three Directors – Vibhav Taneja, Venkatrangam Sreeram and David Jon Feinstein have been appointed. Tesla has also been in contact with State Governments of Maharashtra, Gujarat, Tamil Nadu and Andhra Pradesh to start its India operations. However, it is recently learnt that Gujarat is most likely to be selected for setting up the Tesla assembly and production plant.
Tesla Plant in Kandla or Mundra
It is reported that areas close to either of the two major ports of Kandla and Mundra in the state of Gujarat are being planned as possible locations for the Tesla plant. Having a plant closer to a port would help the company save on logistics while it will also adhere to Prime Minister Narendra Modi’s vision of port led development.
The setting up of the plant in India would involve massive imports and assembling and hence location close to a port would be to its advantage. Also, Gujarat being a major manufacturing hub for both auto and auto components would also be beneficial.
SK Mehta, Chairman of Centre-Owned Deendayal Port Trust (formerly Kandla Port Trust) is actively vying for the Tesla plant to be located close to the Kandla Port. Deendayal Port Trust is developing ‘The Smart Industrial Port City’ on more than 800 acres which could be ideal for setting up the Tesla production and assembly unit.
Benefits Of Setting Up Plant Near Port
Located on the Gulf of Kutch would also make it easier for Tesla to access Middle Eastern markets due to the shorter sailing distance. The Central Government has also extended special benefits to the Gujarat Government in terms of GST benefits and all these factors make the Kandla Port an ideal location for Tesla be it for import of spares, assembly, production or export of cars.
The Mundra Plant in Gujarat is also a likely location. It is the country’s biggest port by volumes and is run by Adani Ports and Special Economic Zone Ltd (APSEZ). The availability of land and the fact that it is linked to the Dedicated Freight Corridor (DFC) work to its advantage.
Tesla is set to bring in the Model 3 electric sedan first into India which could soon be followed by the Model Y crossover SUV. Prices are expected to start from Rs 50 lakh.