Tesla Engages Indian Authorities on Launching Manufacturing Facilities in the Country - Report

Tesla has started negotiations with the Indian authorities about the potential establishment of manufacturing facilities in the country, the Indian media reported. Elon Musk's flagship company had teased the Indian arrival earlier, although it had maintained that it needed incentives and tax benefits in India.

The reports come weeks after Prime Minister Narendra Modi met Tesla CEO Elon Musk during his recent visit to the United States. Tesla has shown interest in establishing its own supply chain ecosystem in India, the Economic Times reported, citing sources. "We asked them about their specific needs and also urged them to consider sourcing their needs from the Indian ecosystem ... But these companies have a well-oiled system of their suppliers. These are initial talks so we are hopeful of making some headway," the sources said.


India's Aggressive EV Policy

India has adopted an aggressive EV policy, under which it aims to sell only electric cars by 2030. Being the global leader, Tesla is poised to play a great role in any emerging market, but the India scene is different.

The high-level meeting particularly focused on the incentives framework if the company were to establish a manufacturing unit in India. The meetings were attended by executives from both Tesla in the US and Tesla India, according to the ET.

The global electric car leader does not have a footprint in India, despite it being one of the biggest automobile markets in the world. This might change soon if Tesla and New Delhi arrive at consensus in certain points of dispute that prevented the global EV leader's entry into the Indian market.

Tesla tesla

Manufacturing Plant?

Tesla founder Elon Musk had earlier ruled out setting up a manufacturing plant in India as New Delhi has not given green light to selling Tesla's China manufactured cars in the country. "Tesla isn't in India yet due to "Challenges with the government," the Tesla CEO had said in a social media post earlier.

Musk had also picked up cudgels with the Indian government over the country's high import duties that effectively price Tesla out of the market by a wide margin.

Musk's meeting with Modi in the US seems to have opened up a path for both sides to begin serious discussions on Tesla's India arrival. Asked if Tesla will enter the Indian market, Musk said, "I am confident that Tesla will be in India and will do so as soon as humanly possible."

Narendra Modi and Elon Musk
Narendra Modi and Elon Musk IANS

"I would like to thank the Prime Minister for his support and hopefully we will be able to announce something in the not so distant future," Musk noted.

After the meeting, Musk also said he was a big fan of the Indian prime minister. "I am a fan of Modi. India is great for solar energy investment. We are also hoping to bring Starlink internet to India ... I am incredibly excited about the future of India. I think India has more promise than any large country in the world," he said.

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