Reliance Jio reportedly in early talks with Tesla for 5G private network

Reliance Jio, is in talks with Tesla about setting up a manufacturing plant in the country. According to industry sources quoted by Financialexpress, Reliance Jio has proposed to create a private network exclusively for Tesla’s factory operations.

This network would provide faster speeds and enable various features such as connected car solutions and production process automation.

Preliminary Talks between Jio and Tesla

Sources familiar with the matter reveal that discussions between Jio and Tesla are currently in the preliminary stages. Further progress in these talks is anticipated once Tesla finalizes its plans for setting up a manufacturing unit in India.

Jio’s Enterprise Connectivity and Private Network Offerings

An anonymous executive from Jio highlighted that the company recognizes the significance of 5G in enterprise connectivity. Jio is actively approaching firms across sectors such as automobile, healthcare, and manufacturing, offering to build and manage their networks while showcasing potential use cases.

Benefits of a Captive Private 5G Network

Implementing a captive private 5G network would provide enterprises with enhanced data speed and capacity within their premises, which may not be achievable with public networks.

Furthermore, these solutions align with Industry 4.0, a transformative technology that revolutionizes the manufacturing sector, offering substantial benefits to companies.

Private Networks and the Potential of 5G: India’s Journey towards 5G in Manufacturing

The concept of private networks emerges as a promising application of 5G technology. A white paper by Qualcomm previously outlined three key advantages of private networks: extensive coverage in remote areas, increased network control for tailored configurations, and the ability to retain sensitive operational data on-premises. Private 5G networks are expected to deliver superior performance profiles.

In December of the previous year, Bharti Airtel, in partnership with Tech Mahindra, announced the deployment of a ‘5G for Enterprise’ solution at Mahindra and Mahindra’s Chakan facility, making it India’s first 5G-enabled automotive manufacturing unit.

Tesla’s Shift in Strategy and Import Duty Reduction

In a noteworthy change of approach, Tesla is now actively considering manufacturing operations in India. The company has shifted its stance and is no longer insisting on a reduction in import duties for fully assembled units. Previously, Tesla had requested a reduction in the 100% import duty imposed on cars priced at $40,000 and above.

A team from Tesla, consisting of supply chain executives, has been actively working on a manufacturing plan for India. As part of this process, the team held talks last week with key ministries and officials in the Prime Minister’s Office (PMO).

Commenting on the news, Rajeev Chandrasekhar, Minister of State for Electronics and Information Technology, said:

India is a very serious contender for Tesla’s production and innovation activities.

Speaking at the event, Nitin Gadkari, Road Transport and Highways Minister, said:

We are willing to offer incentives, subsidies if Tesla sets up their manufacturing in India.