Elon Musk considers India, meeting to determine Tesla's entry into New Delhi

Delhi : In an effort to expand its supply chain outside China, Elon Musk's Tesla has identified India as a potential new location for production. According to reports, senior Tesla executives would meet with government representatives the next week. Conference would be convened to explore local component procurement for Tesla's models.

Tesla's journey to India and a Chinese stumbling block

The fifth-largest economy in the world is not yet where Tesla is present. Elon Musk has slammed India's allegedly high import duties, while India is opposed to allowing Tesla to sell electric cars built in China. 

Nitin Gadkari, India's minister of road transport, stated that Tesla's proposal of "manufacturing in China and selling in India" cannot be accepted at the Raisina Dialogue in New Delhi in April 2022. 

He remarked, "We have all the skills and expertise if Elon Musk is willing to produce in India. He is to produce in India, per our request. Since we have ports here, India is a sizable market. He was able to produce in India and export worldwide.

While Tesla has struggled to establish itself in India, global rivals like Mercedes-Benz AG have started offering locally made vehicles for sale. They are banking on increasing demand for electric vehicles in the nation with the largest population in the globe.

Who will meet who when Tesla execs visit India?

C-suite executives and managers from Tesla's supply chain, production, and business development teams will be among the guests. Tesla is situated in Austin, Texas. The executives are anticipated to restate Tesla's demand that India lower import duties on its cars.

Among other American businesses, Apple has established India as a substitute manufacturing hub and now manufactures 7% of its smartphone output globally there.