Elon Musk's Tesla is scouting land in Satara, Maharashtra, to set up a CKD EV assembly unit after talks with Megha Engineering fell through. Now exploring a new JV, Tesla aims to start operations by FY-end.
In a significant development for India’s electric vehicle (EV) landscape, Elon Musk’s Tesla is reportedly scouting land parcels in Satara, Maharashtra, for setting up a Completely Knocked Down (CKD) EV assembly unit. This move comes after its earlier negotiations with Megha Engineering and Infrastructure Ltd. (MEIL) fell through. Now, Tesla is in talks with a new Indian partner to form a joint venture (JV) and fast-track its manufacturing ambitions in the country.
Tesla has long expressed interest in entering India’s booming EV market, which is expected to grow exponentially in the coming years due to favorable government policies, rising fuel prices, and growing environmental concerns. The plan to establish a CKD assembly unit in India aligns with Tesla’s strategy of penetrating emerging markets through local assembly, allowing them to reduce import duties while offering competitive pricing.
With Satara emerging as a promising industrial hub in Maharashtra, the location offers Tesla strategic advantages in terms of logistics, workforce, and access to key markets. Sources familiar with the matter suggest Tesla is evaluating multiple land parcels and aims to finalize the location and partner by the end of Q3 FY25, with operations expected to begin before the close of the current financial year.
Tesla’s renewed push comes at a time when India is actively working to become a global EV manufacturing hub. The Indian government has rolled out multiple incentives, including the Production-Linked Incentive (PLI) Scheme, and recently revised import duty norms, which allow lower tariffs for carmakers committing to local manufacturing within a set timeframe.
Earlier attempts to collaborate with MEIL reportedly stalled over equity structuring and operational control. Now, Tesla is negotiating with another Indian conglomerate, whose identity remains under wraps, but early signs indicate more favorable progress.
In a parallel major development for India’s green energy ambitions, ReNew Power will launch a massive ₹22,000 crore renewable energy project in Anantapur, Andhra Pradesh, on May 16. Billed as India’s largest single-location renewable energy complex, the facility will feature a 2.5 GW power generation capacity and 1 GWh battery storage system.
The project will be implemented under Andhra Pradesh’s Integrated Clean Energy Policy and is expected to attract further global investment in India's clean energy sector, potentially complementing Tesla’s EV mission with a stable, green power ecosystem.
Tesla's interest in Satara and ReNew’s ambitious project are symbolic of a larger shift—India is quickly becoming a hotspot for clean energy and EV innovation. If Tesla successfully establishes its CKD unit in Maharashtra, it could pave the way for full-fledged manufacturing in the future, creating thousands of jobs and reshaping India's EV narrative.
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