Tech magnate Elon Musk expressed gratitude to Union Commerce Minister Piyush Goyal for his visit to the Tesla facility in California, marking a step forward in the electric carmaker's endeavours to penetrate the South Asian market. Musk, via his X (formerly Twitter) account, conveyed his honour at Goyal's visit and extended apologies for his inability to meet due to health reasons.
Goyal, during his visit to the Tesla factory in Fremont, California, engaged with Indian engineers and financial professionals, showcasing the increasing significance of Indian auto component suppliers in Tesla's EV supply chain.
The scheduled meeting between Piyush Goyal and Elon Musk, part of the minister's US visit, comes several months after Musk's meeting with Prime Minister Narendra Modi, during which Musk expressed a keen interest in substantial investments in India.
According to sources cited by Reuters, Tesla is actively pursuing the establishment of an Indian factory, aiming to manufacture a $24,000 car within the country, increase component sourcing, and establish a comprehensive charging infrastructure nationwide.
Goyal, in his social media post, highlighted the growing role of Indian auto component suppliers in Tesla's supply chain and conveyed his regret at missing Musk's presence, wishing him a speedy recovery. The government is reportedly reviewing a proposal from Tesla, led by Elon Musk, which seeks a reduction in tariffs for imported electric vehicles (EVs). Tesla's proposal includes an appeal for an initial tariff concession to offset India's existing high customs duties, which are at 70 per cent for cars under $40,000 and 100 per cent for cars exceeding $40,000.
This move by the government could potentially expedite Tesla's plans for setting up a manufacturing facility in India. The tariff concession, if granted, would not only benefit Tesla but also pave the way for reduced tariffs for all electric vehicle (EV) manufacturers operating in the country.
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