* Tesla manufacturing unit in Andhra Pradesh

This effort is not new. Naidu has had interactions with Musk since his earlier tenure as Chief Minister. In 2014, Tesla explored solar plant opportunities in the state, further strengthening ties between the two.

metro india news  I amaravati

In a major development, Tesla Inc., led by billionaire entrepreneur Elon Musk, is making strides toward establishing its presence in the Indian market. While Tesla's vehicles are expected to be seen on Indian roads soon, the company's plans for a manufacturing facility have sparked intense competition among states. Andhra Pradesh, under the leadership of Chief Minister N. Chandrababu Naidu, is aggressively positioning itself as the preferred destination for Tesla's production plant.

With a vision to transform the state into a global investment hub, the Andhra Pradesh government is leaving no stone unturned to attract Tesla. Recently, TDP National General Secretary Nara Lokesh visited Tesla's headquarters in the U.S. and presented the state's investment potential to CFO VaibhavTaneja, who reportedly responded positively.

“We are committed to making Andhra Pradesh the top destination for global investments. With world-class infrastructure, a strategic coastline, and a skilled workforce, we are confident that Tesla will find our state an ideal location,” said a senior official from AP Economic Development Board. This effort is not new. Naidu has had interactions with Musk since his earlier tenure as Chief Minister. In 2014, Tesla explored solar plant opportunities in the state, further strengthening ties between the two.

Tesla's potential entry into Andhra Pradesh is reminiscent of Kia Motors' establishment in Anantapur. Kia, which set up its plant during Naidu’s previous administration, has flourished due to the state's business-friendly policies, robust connectivity, and industrial ecosystem. The Kia facility not only brought in significant foreign direct investment but also created thousands of jobs, enhancing the region’s economic landscape. The state government aims to replicate this success with Tesla.

A crucial advantage Andhra Pradesh offers is its extensive coastline, allowing easy access to port facilities. Tesla, which initially plans to import vehicles before full-fledged production, requires a well-connected port infrastructure. The state's multiple ports, particularly Krishnapatnam and Visakhapatnam, provide a logistical edge.

While Andhra Pradesh is pushing hard for Tesla’s manufacturing plant, it faces competition from other states, including Maharashtra (Chakan, Pune), Gujarat, and Tamil Nadu (Chennai region). Maharashtra and Gujarat offer well-developed automotive hubs, but reports indicate Tesla is reluctant to engage in large-scale land acquisition and rehabilitation in these states. Tamil Nadu, with its established automotive ecosystem featuring global giants like Hyundai and BMW, is also a strong contender.

However, Andhra Pradesh’s proactive approach, coupled with its industrial preparedness, positions it as a frontrunner. “Tesla’s investment would be a landmark achievement for our state. We have demonstrated our capability with Kia, and we are confident that Tesla will thrive here as well,” remarked an Andhra Pradesh Economic Development Board (EDB) official.

One of the most promising locations for Tesla’s plant in Andhra Pradesh is Sri City, an integrated business hub with top-tier infrastructure and proximity to Chennai’s automotive belt. Sri City aligns well with Tesla’s preference for pre-acquired land, minimizing regulatory hurdles and delays. The region already hosts global players, making it an attractive choice for Tesla’s India ambitions.

If Tesla finalizes Andhra Pradesh for its manufacturing facility, it would be a game-changing moment for the state’s industrial and economic growth. The investment would not only generate thousands of jobs but also bolster India’s electric vehicle (EV) supply chain, furthering the country’s green mobility vision. With Naidu’s government actively working to secure the deal, Andhra Pradesh is well on its way to becoming a powerhouse for global automotive investments.