Weeks after the American company announced its intentions to enter the Indian market, Maharashtra is looking for potential investment from electric car major Tesla in the state and has held discussions with the company.
In a tweet on Thursday, State Tourism Minister Aaditya Thackeray said that Industry Minister Subhash Desai held a video call, in which he also participated, inviting the electric car manufacturer to Maharashtra with the Tesla team.
Thackeray tweeted, "This evening I had the opportunity to participate in a video call by industries minister @Subhash Desai ji with Tesla team to invite them to Maharashtra. I was present not just because of investment but my firm belief in electric mobility and sustainability."
The report noted that factors such as policies, battery prices, charging infrastructure and supply chain, as well as localisation, are expected to drive the adoption of EVs over the next decade in different segments of the world. In its survey, India Ratings and Research (Ind-Ra) said that the coronavirus pandemic is expected to delay the penetration of electric vehicles in India, as low affordability and the government's emphasis on reviving the established traditional automotive industry are shifting the focus away from EVs in the meantime. Ajay Sawhney, Partner, Cyril Amarchand Mangaldas, said, "Maharashtra has a strong EV policy in place with a vision to grow the state as an EV manufacturing pioneer, but it may face rigid competition from other states that have also taken different EV space initiatives in attracting EV players."
Subsidies and other initiatives are promoting the state 's commitment to electric mobility, he said, adding that while the state is well positioned to attract EV players with its industrial and commercial environment, it will face rigid competition from other states that are not far behind in EV initiatives.
Several steps have been taken by the central government to demonstrate its commitment to developing an e-mobility ecosystem in India. However, in its efficient execution, the lack of a holistic policy system poses a key challenge.