US electric vehicle (EV) maker Tesla, which is exploring the possibility of bringing its auto parts and electronics chain to India, has held talks with the central government, according to a report by the Economic Times (ET) reported on Thursday. Tesla is eyeing sops and tax breaks in India.
According to the ET report, the US-based EV maker has shown interest in bringing its own supply chain ecosystem to India, even as the government has asked the company to assess the existing auto components supply chain in the country.
Tesla Chief Executive Officer (CEO) Elon Musk had met Prime Minister Narendra Modi during his trip to the US last month. Musk had said, "He (PM Modi) really cares about India because he's pushing us to make significant investments in India, which is something we intend to do." Musk also called himself a "fan of Mr Modi" and said that India had "more promise than any large country in the world".
A senior government official told ET on condition of anonymity, “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.”
Tesla US and Tesla India executives sought to know the structure of sops the firm and its partners are likely to get to bring their manufacturing unit to India along with the supportive ecosystem, the report said.
Tesla executives held talks with senior Indian officials and ministers in May this year on establishing a manufacturing base for cars and batteries in India. The world's largest electric car maker shelved its India entry plans because of high import tax structures.
India’s auto components industry, which accounts for 2.3 per cent of the country’s GDP, is set to become the third-largest globally by 2025, according to the government.
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