Tesla is 'absolutely' interested in India, says CEO Elon Musk
EV maker Tesla has had an uneasy relationship with the Indian government over the years. Lately, however, there have been signs of changing dynamics between the two. Tesla CEO Elon Musk affirmed that during an interview. When the Wall Street Journal's Thorold Barker asked Musk whether Tesla is interested in India for a new factory, he said, "absolutely."
Why does this story matter?
The year 2022 was a difficult one for American companies with their manufacturing bases in China. The frosty relationship between Washington and Beijing and the Asian giant's COVID-19 policies showed the risks of production concentration in China. Companies like Apple and Tesla are now looking beyond the dragon, and India has emerged as a viable alternative.
Tesla executives met with Indian officials a week ago
Musk's comment about Tesla's interest in India comes in the backdrop of a recent meeting between the company's executives and Indian officials. In the two-day meeting, the firm's executives discussed incentives such as lower import taxes and local sourcing of components. According to reports, the company, however, stopped short of guaranteeing a manufacturing facility in the country.
India does not want Tesla to sell cars from China
The India-Tesla relationship hit an impasse last year after the Indian government insisted the EV maker must sell locally-made cars. The government did not want the company to bring cars made in China. The company and Musk, however, wanted to sell Tesla cars in India before manufacturing them. The carmaker also sought some incentives, which the government denied.
Tesla is not insistent on import duty cuts
The Indian government is still firm on its previous stance. If anything, the change in heart seems to be on Tesla's side. The company is reportedly not as insistent on import duty cuts as a precondition. It, however, hasn't come up with a formal plan to set up a manufacturing base. We might hear about something like that in the near future.
Tesla is serious about India: Rajeev Chandrasekhar
Tesla is serious about its look-beyond-China move. The company has announced a manufacturing plant in Mexico and has made overtures to other Asian countries, including South Korea and Indonesia. However, India remains a serious interest for the company. Rajeev Chandrasekhar, the Union Minister of State for IT and Electronics, recently told Reuters, Tesla is "seriously looking at India as a production and innovation base."
Company would pick a location by year-end: Musk
During the interview, Musk said Tesla will pick a new location for a manufacturing facility by the end of this year. India is certainly in the running to be the top pick.
