Tesla to procure components worth $1.9bn from India: Piyush Goyal
What's the story
Union Minister of Commerce and Industry, Piyush Goyal, has announced that Tesla is set to procure components worth $1.7-$1.9 billion from India. He also highlighted that the firm already sourced components worth $1 billion from our country in the previous year. The company is showing increasing interest in our market and has engaged in talks with the Centre about establishing a manufacturing facility for cheap electric vehicles (EVs).
Details
Musk spoke to Modi about Indian investment
In May, Tesla's executives visited India to initiate talks about establishing manufacturing facilities for both vehicles and batteries. The company aims to produce a new EV with a price tag of approximately Rs. 20 lakh, making it about 25% more affordable than its current entry-level model. This move is intended to cater to the Indian market and facilitate exports. In June, CEO Elon Musk met Prime Minister Narendra Modi, expressing his interest in making substantial investments in India.
What Next?
Tesla has shifted focus to local production
Initially, Tesla sought entry here by advocating for a reduction in the 100% import tax imposed on EVs. However, negotiations faltered when officials indicated that the company needed to commit to local manufacturing before proceeding. In a notable change of strategy, Tesla has since expressed its eagerness to establish a domestic manufacturing facility. On the Centre's part, Goyal believes that EVs are the future and something that India must try to attract.
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