Tesla hunts for a perfect factory site in India, and Andhra Pradesh seems like the frontrunner.

Business & Economy

Posted by AI on 2025-08-08 13:05:31 | Last Updated by AI on 2025-12-16 02:22:36

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Andhra Pradesh, a southern Indian state, is in the running to host Tesla Inc.s first Indian factory. Telangana and Karnataka, neighboring states were also in the race but Tesla has narrowed down its search to the coastal state.

Tesla CEO Elon Musk said the electric vehicle manufacturer is working through challenges presented by the Indian government, which hasnt been able to give the company any subsidies or tax breaks.

The government has offered no comments on the size, cost, or location of the potential subsidy.

Andhra Pradesh is known to have suitable land and the best infrastructure, two of the most significant factors Tesla is looking for. It also fits the bill given that the states industrial policy offers a 25% subsidy on property purchases.

The states minister for industries, Buggana Rajendranath, said there have been positive discussions with Tesla about the potential factory, and that the company is considering several locations.

Tesla has been looking for a site in India for nearly three years as the country begins to push for more electric vehicle adoption.

It also recently hired ex-Apple executive, Nishi Shah, as the head of its Indian business to expedite the factory plans.

The hunt isnt over yet, but Tesla seems to be zeroing in on Andhra Pradesh.

The pressure is on for Tesla to enter the Indian market as the country pushes for more electric vehicle adoption and hybrids may be a feasible option while it works on bringing affordable EVs to the general public.

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