Tesla In Talks With Government To Set Up Supply Chain Ecosystem In India


Tesla In Talks With Government To Set Up Supply Chain Ecosystem In India | Photo: Craig Adderley/ Pexels

Tesla has engaged in talks with Indian officials to set up its auto parts and electronics chain in India, along with seeking incentives and tax benefits. If all goes well, Tesla can reportedly produce 5 lakh electric vehicles annually that starts from Rs 20 lakh, reported The Economic Times quoting sources.

These are, however, initial talks between the Indian government and Tesla and may take some time before a Tesla facility arrives in the country.

Tesla is also conducting meetings with industry executives in India, the report noted. Last month, after hearing Prime Minister Modi’s Make in India pitch, Musk announced a change of plans, saying that his electric vehicle and battery company will now come to India “as soon as it is humanly possible.”

The report also said that the billionaire is also looking to make India its base as the company plans to ship cars to other Indo-Pacific regions.

Musk told reporters in conversations following his meeting with Modi: “He really cares about India because he’s pushing us to make significant investments in India, which is something that we intend to do and we’re just trying to figure out the right timing.”

Musk changes plans

It was a change of plans for the mercurial Musk who had earlier refused to consider manufacturing in India unless India lowered tariffs for imported Teslas to be sold in India. Modi “really wants to do the right thing for India,” he said. Modi wants to make sure that the advantage from investments “accrues to India’s advantage, which is, you know, obviously, that’s the job”, he added.

India has more “promise than any large country in the world”, Musk said. If Tesla comes to India, it will be following the pattern of companies like Apple diversifying their manufacturing from China because of geopolitical and supply chain issues.

With input from Agencies.

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