Tesla Mulls To Double Import Of Parts From India: Piyush Goyal

SUMMARY

After paying a visit to Tesla’s state-of-the-art manufacturing facility at Fremont, California, the commerce minister Piyush Goyal announced the development on X

Goyal and Tesla CEO Elon Musk are expected to meet to talk about the advancements of Tesla’s entry in India

In September, Goyal said that Tesla plans to source components worth $1.7 Bn to $1.9 Bn this year from Indian vendors after buying $1 Bn worth of components last year

US-based electric vehicle (EV) maker Tesla is mulling to double the number of components it imports from India, Union Minister of Commerce and Industry, Piyush Goyal, said in a post on social media platform X.

Goyal wrote the post after paying a visit to Tesla’s state-of-the-art manufacturing facility at Fremont, California. “Proud to see the growing importance of Auto component suppliers from India in the Tesla EV supply chain. It is on its way to double its components imports from India.”

He added that he was delighted to see talented Indian engineers and finance professionals working across senior positions and contributing to the growth of the global electric vehicle giant.

Though at the Tesla plant, Goyal could not meet the company’s Chief Executive Officer (CEO) Elon Musk, the minister is expected to see the latter sometime during this visit to the US. In the meeting, the two sides will discuss Tesla’s plans to set up an Indian factory which will manufacture a $24,000 worth car model, reported Reuters.

In September Goyal said that Tesla plans to source components worth $1.7 Bn to $1.9 Bn this year from Indian vendors after buying $1 Bn worth of components last year.

In a bid to speed up the process of Tesla’s entry into the Indian market, the government is reportedly planning to expedite the approvals. The government is planning to provide all the necessary clearances to the company by January 2024.

The development comes at a time when the Indian government is considering tax reduction on the import of fully assembled EVs for up to five years.

Experts are of the view that this will attract global companies like Tesla and Vinfast, among others, to not only manufacture and assemble EVs in the country but also import fully assembled versions.

The government is reportedly working on an EV policy designed to enable global car manufacturers to import electric vehicles at reduced duty rates, provided they commit to eventually start the manufacturing process in India. However, the policy is yet to be finalised.