On Tuesday, Piyush Goyal, the minister of commerce and industry, announced that Tesla would increase its imports of parts from India by double while talking with the government about a strategy to produce and market the product there.
“I’m incredibly happy to see that great Indian engineers and finance experts are contributing to Tesla’s incredible quest to reinvent transportation in senior roles.
I’m also glad to note that Indian auto component suppliers are becoming more and more significant in the Tesla EV supply chain. It is en route to double its imports of Indian components. “Missed the magnetic presence of Mr. @ElonMusk and I hope he recovers quickly,” Goyal tweeted during his visit to Tesla’s Fremont manufacturing plant.
Goyal and Musk are expected to meet in the US after their initial talks over Tesla’s plans for India. Earlier this year, in the US, the businessman had also visited Prime Minister Narendra Modi.
Goyal had previously stated that the business may increase its sourcing from India, which was approximately $1 billion last year. Although Tesla and the government have been working together for a while, it appears that Tesla is now more eager to concentrate on India. The initial news regarding Tesla’s discussions to produce a low-cost vehicle for the Indian and foreign markets—possibly priced at Rs 20 lakh—was published in July by the Times of India.
The government was reportedly exploring a plan to reduce import duties on electric vehicles for a certain period of time, contingent on domestic manufacture by companies such as Tesla, according to a report published by TOI last month. Businesses view this as an essential part of their strategy to build a supplier base and conduct market research.
Goyal met with investors while in the US, promoting India as a desirable place to invest. Goyal is in the US for an Apec and Indo Pacific Economic Framework meeting.
“…highlighted how the country offers promising opportunities for investors, thanks to the unique combination of our demographic dividend, manufacturing capabilities & conducive business environment,” Goyal wrote on Twitter.
As businesses explore a China Plus One plan to lessen the dependence on a single source for their products, the government continues to seek out investors. Although there has been a significant movement in Apple’s contract manufacturers to India, the government thinks that other companies, like Tesla, could be interested in investing.