The Andhra Pradesh government is making concerted efforts to attract Tesla, the American electric vehicle (EV) giant, to set up a manufacturing unit in the state. Tesla aims to produce affordable electric vehicles for the domestic market, and the state government is keen to facilitate this initiative. A Tesla representative team has already surveyed land parcels in the combined Nellore district and other Rayalaseema districts, signalling serious interest in the region.
Andhra Pradesh has a competitive edge in this race due to its readily available land banks. The state has already acquired around 15,000 acres in the Nellore and Tirupati districts as part of the Visakhapatnam-Chennai Industrial Corridor. This pre-acquired land could significantly reduce the time required for land acquisition and resettlement, making the state an attractive option for Tesla. Additionally, the proximity to Krishnapatnam Port and the upcoming Ramayapatnam Port, along with the planned Daggadarthi airport, enhances the logistical appeal of the region.
However, Andhra Pradesh faces stiff competition from other states like Maharashtra, Gujarat, and Tamil Nadu, which are also vying to attract Tesla. Maharashtra, where Tesla India Motors and Energy Private Limited is already headquartered, is pushing hard to establish the manufacturing unit in Pune. Similarly, Gujarat, a BJP-ruled state with a strong industrial base, and Tamil Nadu, home to several major automobile manufacturers, are also in the race.
The Andhra Pradesh government has been proactive in its efforts to woo Tesla. During his visit to the United States, Minister Nara Lokesh held discussions with Tesla representatives in Texas, inviting them to invest in the state. The government has also sent multiple letters and held virtual meetings with Tesla officials to discuss potential incentives and benefits.
Tesla’s primary goal is to reduce the cost of electric vehicles by manufacturing them locally, thereby avoiding the 110% import duties imposed by the central government on imported cars. Establishing a manufacturing unit in India would not only help Tesla tap into the growing domestic EV market but also enhance its global brand image.
If Tesla sets up its unit in Andhra Pradesh, it would bring significant investments, create job opportunities, and boost the state’s industrial profile. The project would also position Andhra Pradesh as a key player in the global EV market, attracting further investments in the sector.
