Tesla, the electric vehicle manufacturing giant led by Elon Musk, is actively engaged in discussions with the Indian government regarding its entry into the Indian market.
Tesla aims to establish its auto parts and electronics chain in India while seeking concessions and tax exemptions from the government.
As per reports, Tesla plans to develop its own supply chain ecosystem in the country, but the government has requested the company to assess the existing auto components supply chain in India.
It is important to note that the authenticity of this information cannot be confirmed at present.
Promising Auto Components Market in India
India’s auto components market currently contributes 2.3% to the country’s GDP.
It is anticipated to become the world’s third-largest auto components market by 2025, according to government projections.
Tesla is already procuring steering wheels and other components worth approximately $100 million from Indian suppliers.
Points of Discussion with Tesla
A senior official revealed that Tesla was questioned about its specific requirements and encouraged to explore sourcing those needs from the Indian ecosystem itself.
While acknowledging Tesla’s well-established network of suppliers, the official emphasized that the discussions are still in the early stages, allowing for further progress.
Additionally, Tesla’s executives from both the American and Indian units are seeking information about the concessions and support their company and partners would receive if Tesla establishes a manufacturing unit in India.
Earlier this year, Tesla officials held talks with Indian officials and ministers to discuss setting up manufacturing facilities for cars and batteries in India.
However, Tesla postponed its entry plan, citing high import duties.
Meeting Between Elon Musk and PM Modi
During his recent visit to the United States, Prime Minister Narendra Modi met with Tesla CEO Elon Musk.
Musk expressed his admiration for PM Modi, stating that he highly values India as a country and commends the government’s efforts to attract substantial investments.
Musk described himself as a fan of PM Modi and expressed trust in India as a more reliable destination for investment compared to other major countries in the world.
The ongoing talks between Tesla and the Indian government signify a significant step towards Tesla’s potential entry into the Indian market,
bringing exciting prospects for the future of electric vehicles in the country.
