Electric Cars: According to a report in the Economic Times, Tesla has discussed with central government officials the possibility of bringing its auto parts and electronics chain to India, as well as offering incentives and tax exemptions in the process.
According to the information, this development is an indication of Tesla’s renewed interest in India, which happened just after the meeting with the company’s CEO Elon Musk during Prime Minister Narendra Modi’s visit to the US last month.
Tesla has shown interest in bringing its supply chain to India, while the government has asked the company to evaluate the existing auto components in the country.
On the condition of anonymity, a senior government official said, “We have asked them about their specific requirements and have also urged them to consider meeting their requirements from sources in India. But these companies already have a system ready for the supply chain. This is the initial conversation, so we hope that some better solution will be found in this.
Meetings with Industry Executives
According to the information received, in the meetings, the officials of Tesla US and Tesla India tried to know the supportive ecosystem present in India as well as the structure of incentives available to the company and its partners for bringing their manufacturing units in India. Along with this, demanded information about the things to be made available to the company.
Apart from talks with the government, the company is also meeting industry executives. Recently, at the Society of Indian Automobile Manufacturers (SIAM) meeting in Delhi, Tesla said that it would like to bring its own suppliers to India. While the Indian auto industry advocated for local parts manufacturers, saying that there are many veterans and well-established auto players in the country. But Tesla maintains its “all-in-house” approach and adheres to a certain level of quality standards. For which only its established partners can be depended upon.
According to Craig Irwin, managing director of Roth Capital Partners, Tesla needs to serve all markets to meet its long-term development objective. Tesla wants to solve all its problems in the Indian market on its own due to the problems found in China. But Tesla needs India.
In June, after a meeting with PM Modi, Tesla CEO Elon Musk had said that as soon as possible. The company will be in India. At that time Modi was on a state visit to America. The Government of India had invited Musk to explore investment opportunities in electric mobility and commercial space sector, in response to which Musk said that he is trying to find out the right time to do so.
The conversation was seen as positive and a sign that the ongoing tussle between the government and Tesla could be a thing of the past. Whereas earlier the central government had categorically rejected the company’s demand for reduction in import tax on behalf of Tesla. After which the company postponed its plan to make its debut in India in the middle of 2022. Looking at the Modi-Musk meeting and India’s leadership potential, experts said they are positive about Tesla’s big projects for India.
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