Tesla and India: Closer to the future with talks on EV Imports and Plant establishment
Delhi : People with knowledge of the Indian government's plans claim that the US manufacturer Tesla Inc. is nearing a deal with India that would let it to import its electric vehicles starting next year and establish a plant there in less than two years.
One of the persons, who asked not to be named because the talks are secret, suggested that an announcement may be made during the Vibrant Gujarat Global Summit in January. According to another source, Gujarat, Maharashtra, and Tamil Nadu are being considered since they already have developed ecosystems for exporting and selling electric automobiles.
One insider stated that Tesla planned to raise its procurement of car components from the country to as much as $15 billion, with an initial minimum investment of around $2 billion in each factory. According to the source, the US manufacturer would also want to reduce costs by producing certain batteries in India.
The people stated that no decisions have been put in stone and that plans may alter. Elon Musk, the CEO of Tesla, stated in June that the company will be making a "significant investment" in India, and he intended to travel there in 2024.
Requests for comments were not answered by representatives of the ministries of finance, commerce, and industry, or the Ministry of Heavy Industries, which is in charge of the country's car industry. A request for response from Tesla was likewise met with silence. Trade Minister Piyush Goyal stated in September that Tesla intends to nearly treble its imports of car components from India to $1.9 billion this year. Goyal visited Tesla's facility in Fremont, California, earlier this month. The electric vehicle manufacturer imported $1 billion worth of parts from the country the previous year, he said at a New Delhi event.
After a year-long standoff, Tesla and India, the third-largest car market in the world, resumed talks in May. India has encouraged Tesla not to sell automobiles built in China, its political adversary, after Musk lambasted the country's high import duties and electric vehicle (EV) rules.