The race is getting interesting by the day. Tesla Motors’ entry into India is now a close knit contest for three states that flaunt vivid manufacturing bases. Andhra Pradesh, Telangana and Maharashtra are not compromising with their efforts to woo one of the world’s greatest automaker company towards their regions to set up its biggest Giagfactory yet.
The CM’s of the three respective states are making every attempt possible to win the attention of Elon Musk, founder of Tesla. The deal is yet to be finalized and the Chief Ministers are showering every possible incentive in the proposed deal by way of extensive SEZ s and other benefits, if Musk chooses them as Tesla’s India’s largest base.
Ease of Doing Business
Andhra Pradesh in this regard stands a strong chance. The state that has been ranked number one in the ease of doing business is now the favorite choice of several international investors. AP, which has already proved the mettle with some of the top league auto names gracing the region with their manufacturing units is a win win choice for Tesla. The reasons are so obvious.
Vizag Chennai Industrial Corridor
The biggest trump card for the state is the upcoming Vizag Chennai Industrial corridor. The proposed corridor that will pass through the nine districts of the state will accelerate the industrial growth with high connectivity. Only recently, The Asian Development Bank has approved a $631 million loan for the corridor construction which will run from West Bengal to Tuticorin in TN. The prospects are bound to be robust in the days to come, as the corridor materialises and sees shape.
Fully Functional and Reckoned Ports
Andhra, the state with second longest coastline flaunts efficient ports and easy access to Tamil Nadu. The recent decision made by Kia Motors to come to the state because of the accessibility to TN and the Hyundai supplier base there explains it all.
Plus, all major auto players require fully functional ports that deploy important trade operations. In this regard, Andhra Pradesh’s Krishnapatnam Port is one of the strongest assets there is. KPCL is reckoned globally for its seamless operations and client relationships. Krishnapatnam Port serves an easy access, if Tesla chooses regions at closer proximity, just like Kia did.
Growing Manufacturing Eco System
Isuzu’s ongoing operations at Sri City prove that a solid manufacturing eco system is slowly coming in order, making way for more players to join the league. The state has been working relentlessly on this front, explaining the presence of great resources, both in the form of special economic zones and add on compatibles such as access to ports and nearby states. With Kia joining the list, Tesla will definitely want to look at the specifics.
It was only recently that AP won over Telangana with Rs 3,000 Apollo Tyres manufacturing plant project. This deal has definitely taken the game plan to the next level, and cleared the doubts regarding the possibilities. What had started with electronics is now progressing to other verticals such as automotive and power. Andhra has more than two examples to prove in every sphere.
Energy Efficient State
Tesla Motors’ Gigafactory, said to be one of the largest plants in the world for lithium-ion batteries manufacturing will need a state that is high on energy efficiency and sustainability. AP wins in this area with a better advantage over the other two states, clearly.
Tesla Motors will be looking extensively at exporting cars to South and East Asian markets. There is nobody else who has an effective east Asian networking other than the CM himself. With its plant in AP, Tesla has half the battle won.
On a different note, Tesla’s new CEO of US for NextEV is none other than the Queen of the Electric Car Biz, Padmasree Warrior. No prizes for guessing where she originally hails from.