In a significant move, Tesla Inc. has unveiled plans to double its imports of components from India, reinforcing its commitment to the burgeoning market. The announcement follows a visit by Indian Trade Minister Piyush Goyal to Tesla’s manufacturing facility in Fremont, California, where he shared insights into the company’s expansive agenda.
In September, Tesla set its sights on importing components valued between $1.7 billion and $1.9 billion from India for the current fiscal year, building on the $1 billion worth of components procured in the previous year.
Minister Goyal’s visit to the U.S. was marked by discussions centered around Tesla’s ventures in India, including the prospect of establishing a factory, manufacturing an affordable $24,000 car, augmenting component imports, and developing a comprehensive charging infrastructure across the nation. Expressing his satisfaction, Goyal highlighted the presence of Indian professionals in senior roles at Tesla.
However, the absence of Tesla’s charismatic CEO Elon Musk during Goyal’s visit raised eyebrows. Goyal, citing Musk’s illness, conveyed the Tesla founder’s apologies and mutual interest in a future meeting. This followed Musk’s meeting with Indian Prime Minister Narendra Modi in June, where Modi encouraged substantial Tesla investments in the country.
Elon Musk had earlier hinted at the possibility of establishing a manufacturing unit in India, contingent on the success of imported vehicles, reflecting his keen interest in the Indian market. Importantly, Goyal, in September, categorically ruled out import duty concessions for Tesla, affirming a policy framework that fosters equal opportunities without differentiation or preferences. India currently imposes a 100% import duty on fully imported cars exceeding $40,000 and 70% on those priced below this threshold.
The Indian government’s strategic initiatives, including production-linked incentives (PLI) for advanced chemistry cell battery storage and auto-components, and drone industries, aim to entice Tesla’s active participation. Despite challenges posed by India’s import duties on fully imported cars, Musk views the market as promising.
Looking ahead, Elon Musk is slated to visit India in 2024, sparking anticipation around potential investments and operations. The government’s commitment to formulating inclusive policies in consultation with all stakeholders underscores its dedication to providing equal opportunities for all players in this dynamic automotive landscape.
As Tesla’s collaboration with India intensifies, the spotlight remains on how the electric vehicle giant will navigate regulatory landscapes, import duties, and local manufacturing to establish a formidable presence in one of the world’s fastest-growing automotive markets.
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(via)
