Apart from engaging with government officials, Tesla has met with India’s industry leaders
Reports are coming out that Tesla is actively discussing the possibility of establishing an auto parts and electronics chain in India with Indian government officials. These talks also include exploring incentives and tax cuts, suggesting that US-based electric car makers are showing renewed interest in the Indian market. The debate gained momentum after Prime Minister Narendra Modi recently met with Tesla CEO Elon Musk during a visit to the United States.
A source familiar with the matter said an annual production capacity of 500,000 units and a starting price of 2 million rupees were being considered. Tesla is interested in building its supply chain ecosystem in India. However, the government has asked the company to evaluate India’s existing auto parts supply chain. A senior government official, who requested anonymity, said he had asked Tesla about its specific needs. He urged it to consider sourcing them from the Indian ecosystem. But the person acknowledged that these initial negotiations are imperative to moving forward because Tesla already has an established supplier system.
During these meetings, Tesla US and Tesla India representatives asked about the company’s and its partners’ incentive framework. This was looking to build manufacturing facilities in India with the necessary support ecosystem. They also got detailed information about incentives and tax breaks Tesla may be able to benefit from.
In addition to working with the government, Tesla has also held meetings with Indian industry leaders. Tesla announced its intention to bring its suppliers to India at the Society of Indian Automobile Manufacturers’ meeting last week. SIAM stressed the presence of an experienced and established Indian parts maker and demanded its involvement. However, it reiterated that the company prefers an “everything in-house” approach. The company emphasized that its specific quality standards can only be replicated through existing partners.
There is a growing interest among international automakers in India’s electric vehicle market, as demonstrated by Tesla’s conversation with the Indian government. India is actively promoting electric vehicles to reduce environmental pollution and fossil fuel dependence. Governments have implemented various initiatives and incentives to attract investment in the electric vehicle sector and build the necessary infrastructure.
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