9MAY, 2025ASIAMANUFACTURINGREVIEW.COMABU DHABI, JAPAN DEEPEN TIES IN SMART MOBILITY, BUSINESS, AND SUSTAINABILITYTESLA TO ESTABLISH EV MANUFACTURING PLANT IN INDIAAn Abu Dhabi economic delegation, led by the Abu Dhabi Department of Economic Development (ADDED), concluded its successful visit to Japan recently, signing agreements with government entities and the private sector to further enhance partnerships in various industries and high-growth clusters.The Abu Dhabi economic delegation, comprising representatives from more than 80 public sector entities, private enterprises, SMEs, and startups, engaged in high-level meetings with top government officials, key businesses and investors in Japan, exploring collaboration opportunities in across key sectors including life sciences, carbon-neutral technologies, AI, digital infrastructure, robotics, advanced manufacturing and financial services."We are doubling down on our efforts to future-proof the economy and cement Abu Dhabi's stature as a rising economic powerhouse and a global hub for talent, business, investment and trade. Our visit to Japan presented a valuable opportunity to further strengthen our longstanding partnership by exploring new avenues of collaboration in various sectors," stated His Excellency Ahmed Jasim Al Zaabi, Chairman of ADDED.During the visit, Abu Dhabi and Japan entered into multiple agreements. These entail a strategic collaboration for intelligent mobility solutions between Emirates Driving Company and Zenmov, a top firm in smart mobility solutions, along with the agreement between the Abu Dhabi Chamber and the Japan External Trade Organization (JETRO) to enhance business relations and generate new collaboration opportunities.The Nema initiative of the Emirates Foundation and the Japan International Cooperation Center (JICE) have signed a pact to enhance collaboration aimed at meeting Nema's objective of cutting food loss and waste by 50 percent by 2030, aligning with the UAE's National Food Security Strategy 2051 and U.N. Sustainable Development Goals."The agreements signed during this visit reinforce our commitment to deepening partnerships across priority industries and clusters to address giga shifts in the global economy. We remain committed to enhancing cooperation with key economies and trading partners, making human development and sustainability our top priorities to shape a brighter tomorrow," added Al Zaabi. Tesla intends to establish an electric vehicle (EV) assembly facility in Satara, Maharashtra, India functioning as a completely knocked down (CKD) unit to take advantage of reduced import tariffs. The CKD assembly enables Tesla to bring in components and locally build EVs, following India's regulations that promote local electric vehicle production.The firm had considered locations in Andhra Pradesh and Gujarat and evaluated a partnership with Megha Engineering, yet Satara has now surfaced as the probable site. Tesla has rented office space in Mumbai and obtained showroom sites in both Delhi and Mumbai while employing more than 30 positions in India to assist operations.India's updated EV policy is strategically crafted to lure international manufacturers while fostering local competencies, highlighting a refined industrial strategy. In contrast to several markets Tesla has entered, India's EV passenger car sector is already led by dominant companies, with Tata Motors commanding 62.26% of the market and MG Motors possessing 21.75%.These local champions have achieved their success through vehicles tailored for Indian conditions and price ranges, posing a possible obstacle for Tesla's typically premium-centered approach.The competitive challenge goes beyond current leaders, as projections indicate that Tesla's dominance in the global EV market is being contested by firms such as Volkswagen and BYD, with the latter also making its entry into the Indian market.To succeed in India's EV market, manufacturers must tailor their strategies to local adoption trends, which may clarify why Tesla is initially establishing a small assembly operation instead of a complete manufacturing facility.
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