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Following the meeting of Prime Minister Narendra Modi and Musk, and the company’s hiring spree in India, Andhra Pradesh has renewed its efforts.Andhra Pradesh has joined the race to woo Elon Musk’s Tesla to set up its much-anticipated electric vehicle (EV) manufacturing unit in southern part of the state.
According to highly placed sources, the state government’s Economic Development Board (EDB) has made a pitch with its port connectivity and abundant land to attract the futuristic car company. The talks had been initiated with Tesla by the new Telugu Desam Party (TDP) state government in October 2024, when minister Nara Lokesh had met the company’s chief financial officer Vaibhav Taneja during his US visit.
Following the meeting of Prime Minister Narendra Modi and Musk, and the company’s hiring spree in India, Andhra Pradesh has renewed its efforts.
Sources said Andhra Pradesh has worked out an attractive set of incentives including ready land parcels. Initially, the company may import readymade cars and then gradually set up a manufacturing facility. It is here that Andhra Pradesh is trying to set itself apart from other competing state governments.
“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 readymade ecosystem of auto companies, battery manufacturers and ancillary manufacturers here,” said a source, who did not wish to be identified.
The state has also stated that south India accounts for most EV four-wheeler sales in India and the company should have a manufacturing facility in Andhra Pradesh. EV sales statistics show that about 60% of EV car sales are in four southern states of Kerala, Telangana, Tamil Nadu and Karnataka.
This is not the first time that the state government has pitched to the company. In 2017, Naidu had signed a memorandum of understanding with Tesla and Musk had promised to extend technological expertise for establishment of two solar energy storage units of 4 MW capacity each in Rayalaseema.
