Why Tesla needs an Apple model to crack India, check details
Delhi : The Indian government has requested Tesla, which is considering the idea of establishing a manufacturing facility and doing business in India, to follow in the footsteps of tech giant Apple in finding local companies to work with any Chinese suppliers involved. This action is being taken at a time when the US automaker has been in discussions with the Indian government and authorities for weeks about establishing a local production facility that might produce the eagerly anticipated 20 lakh automobile.
Tesla executives told the Indian government during meetings with government representatives in New Delhi that the company wanted some of its Chinese vendors to establish a facility there to improve its supply chain. According to the article, in response, government representatives informed Tesla that because Chinese companies have been subject to severe scrutiny since a border dispute between the two nations in 2020, approving wholly-owned Chinese corporations in India may be challenging. It also says that the Indian government officials proposed a workaround where Tesla would adopt Apple's strategy. After finding local joint-venture partners, the US IT giant recently received licenses to introduce Chinese suppliers to India.
Elon Musk, the CEO of Tesla, has expressed interest in establishing a local manufacturing site in India. The company also plans to manufacture the cheapest car it has ever made in India, which will be marketed there as well as in other foreign markets. Bringing Chinese suppliers to India is a huge issue for Tesla, though, especially in light of the tense geopolitical relations between China and India.
According to the source, Elon Musk, the CEO of Tesla, is reportedly looking to expand outside of China, the country where the automaker has its largest overseas market share. Due to its indicated interest in hosting the new Tesla facility in Asia, India emerged as a strong contender among the choices for that. However, if Tesla needs to build a facility in India and control prices to create a less expensive EV, the problem with Chinese suppliers would be crucial.
The primary EV components, including battery cells, are not available in India from local sources. Even Tata Motors, the biggest maker of electric vehicles in India, has been importing its EV battery cells from China. According to rumors, Tesla has been looking for a separate ecosystem for its Chinese vendor community. However, it can only obtain those permits on a case-by-case basis if a partner in the joint venture is an Indian citizen.
