Tesla Likely To Make India Entry In 2024 As Govt Rolls Out Necessary Approvals: Report
Earlier this year, Tesla executives also held talks with senior Indian government officials and ministers in May on setting up a manufacturing base for cars and batteries in India
The Centre is ready to ramp up entry of US-based electric auto major Tesla Inc. into India by rolling out the required approvals from the departments concerned by 2024. A report published by the Economic Times said that it should be noted that the world's largest electric carmaker has been in talks with the central government for quite some time now.
Earlier this year, Tesla executives also held talks with senior Indian government officials and ministers in May on setting up a manufacturing base for cars and batteries in India. However, Tesla shelved its India entry plans because of high import tax structures. According to the ET report, Tesla wants to set up its supply-chain ecosystem in India, which is being seen as a significant opportunity for the country's EV manufacturing space.
In September, it was reported that the Elon Musk-owned EV making company had laid down a blueprint to make and sell battery storage systems in India. The auto firm has also sought benefits from the government to establish destructive testing for specific components and testing tracks for all vehicles in India.
Commerce and Industry Minister Piyush Goyal had said that Tesla is looking to source components worth around $1.9 billion from India in 2023 as against $1 billion last year, according to a Reuters report. It has been reported that the government is also working on its EV policy in a bid to cut down import taxes for automakers that are committed to some local manufacturing.
Tesla Chief Executive Officer (CEO) Elon Musk had met Prime Minister Narendra Modi during his trip to the US in May. 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". Musk also announced his plans to visit India in 2024.
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