Tesla has been meeting with industry executives in India in addition to interacting with the government.
According to the Economic Times, Tesla is actively exploring the prospective creation of its auto parts and electronics chain in India with Indian government authorities. These discussions also include the pursuit of incentives and tax breaks, indicating the electric vehicle manufacturer’s increased interest in the Indian market. Following Prime Minister Narendra Modi’s recent meeting with Tesla CEO Elon Musk on his visit to the United States, the discussions have gathered traction.
According to ET sources familiar with the situation, Tesla is eager to develop its own supply chain ecosystem in India, despite the government’s request that the firm analyse the country’s existing auto component supply chain. According to a senior government source who desired anonymity, they have asked Tesla about their precise requirements and encouraged them to explore sourcing their needs from the Indian ecosystem. However, the insider admitted that Tesla currently has a well-established supply structure, making these first discussions critical for advancement.
During these talks, representatives from Tesla in the United States and Tesla India enquired about the incentives framework for the company and its partners, with the goal of establishing a manufacturing unit in India as well as the necessary supported ecosystem. They’ve also asked for specifics on potential incentives and tax advantages that could be made available to Tesla.
Tesla has been meeting with industry executives in India in addition to interacting with the government. Tesla stated its plan to bring its own suppliers to India at a recent event sponsored by the Society of Indian Automobile Manufacturers (SIAM) in the capital. While SIAM advocated for the participation of skilled and established Indian component makers, Tesla maintained its preference for a “all in-house” strategy. The corporation stressed that its unique set of quality standards can only be replicated through its current partners.
These negotiations between Tesla and the Indian government illustrate international manufacturers’ rising interest in India’s electric vehicle industry. India has actively promoted the use of electric vehicles in order to minimise pollution and reliance on fossil fuels. The government has put in place a number of programmes and incentives to encourage investment in the electric vehicle sector and to build the necessary infrastructure.
