Tesla Plans To Source Auto Parts Worth $1.7-$1.9 Billion From India: Piyush Goyal

Piyush Goyal said the quantum of imports will be around double as compared to auto parts worth $1 billion imported by Tesla from India last year

Tesla executives had held discussions with senior Indian officials and ministers in May this year on setting up a manufacturing facility for cars and batteries in India. ( Image Source :Getty )

Union Commerce Minister Piyush Goyal on Wednesday said Elon Musk-led US electric vehicle (EV) maker Tesla Inc is planning to source automobile components worth $1.7-1.9 billion this year. The minister, who was addressing the annual convention of Automotive Component Manufacturers Association (ACMA), said the quantum of imports will be around double as compared to auto parts worth $1 billion imported by Tesla from India last year.

"Tesla last year already bought $1 billion worth of components from India... this year their target is $1.7-$1.9 billion," Goyal said. "I am convinced that this (EVs) is the future. It is something we must try to attract," he said.

#WATCH | Delhi: Addressing the Annual Session of the 63rd Automobile Component Manufacturers Association of India, Union Minister Piyush Goyal says, "...Tesla already last year bought $ 1 bn of components from all of you sitting here. I have a list of companies who supplied to… pic.twitter.com/tyIDpmVyoh

— ANI (@ANI) September 13, 2023

The government earlier had said that 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.

Goyal's statement on Tesla planning to increase the quantum of imports comes around two months after reports said that the Elon Musk-led EV maker has held talks with the central government, and is exploring the possibility of bringing its auto parts and electronics chain to India and getting sops and tax breaks in the process.

According to a report by the Economic Times (ET) on July 13, the US-headquartered EV maker has shown interest in bringing its own supply chain ecosystem to India, even as the government has asked the automaker to assess the existing auto components supply chain in the country.

Earlier, executives from Tesla had held discussions with senior Indian officials and ministers in May this year on setting up a manufacturing facility for cars and batteries in India. The world's largest EV maker, however, shelved its India entry plans because of high import tax structures.

After meeting Prime Minister Narendra Modi during his trip to the US in June, Tesla CEO Elon 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."