ANSWER 5

The Tesla, Inc. (formerly Tesla Motors) is an American company that specializes
in electric automotives, energy storage and solar panel manufacturing based in Palo
Alto, California. Tesla was founded in 2003, the company specializes in electric
cars, lithium-ion battery energy storage, and residential photovoltaic panels (through the
subsidiary company SolarCity). CEO Elon Musk said that he envisions Tesla as a
technology company and independent automaker, aimed at eventually offering electric
cars at prices affordable to the average consumer.
The automobile industry occupies a prominent place in the Indian economy. In Financial
Year (FY) 2015-16, the industry contributed 7.1% to India’s Gross Domestic Product
(GDP) and 49% of the nation’s manufacturing GDP.

1. An auto hub located near Pune city in Maharashtra, Chakan houses industrial
parks developed by Maharashtra Industrial Development Corporation (MIDC).
The well-known auto industry names in the Chakan Industrial belt include
Germany based Volkswagen and Daimler along with Indian auto majors such as
Mahindra & Mahindra and Bajaj Auto.
2. Automobile clustering started in this region due to its-
 Proximity to the coast
 Availability of power supply
 Skilled labor pool
 Exceptional infrastructure.
3. Chakan’s strategic location helped in the rapid expansion of automobile
industries in the region. Its proximity to Mumbai’s Jawaharlal Nehru Port Trust
(JNPT) and National Highways connecting important cities in Maharashtra made
it attractive to automobile companies. Thus Tesla should also target this area and
build their car manufacturing unit here.
4. Chakan is also well connected to Maharashtra State Corporation Transport
buses from all important cities of Western Maharashtra Making it convenient for
various officials who come from abroad easy access to the factory region.
5. The proposed new international airport at Pune will further improve its
connectivity to major global cities. The Chankan-Talegaon belt hosts around 750
large and small industries predominantly focused on making automobile and
automobile components. Also a major factor so as to provide various automobile
parts for the various car models made by Tesla.
6. Other regions within Maharashtra which can be targeted by Tesla are-
 Aurangabad
 Nashik
Both these regions are equally well connected with air, road and rail transport facilities.

To conclude Maharashtra stakes claim the number one position with sales of 3,54,500
being registered. This is an 8.9% increase as compared to the previous financial year.
Thus keeping all the following points into consideration, Maharashtra should be
shortlisted by Tesla as the location where they can set up their car manufacturing unit.