New Delhi: A much-awaited discussion is underway as Tesla owner Elon Musk is reportedly having conversations with officials from the Indian government to set up a factory in India.
As reported by the Economic Times, Elon Musk plans to set up its EV vehicle manufacturing plants in India. Musk has been showing interest in Indian markets after he met with Prime Minister Narendra Modi during the latter’s US tour.
“We asked them about their specific needs and also urged them to consider sourcing their needs from the Indian ecosystem,” said a senior government official.
5 lakh EV units
Tesla plans to establish its factory within the country with a yearly capacity of 5 lakh EV units; with a price range starting from 20 lakh.
Musk-owned car company has also been conducting meetings with industry executives. In a recent gathering conducted by the Society of Indian Automobile Manufacturers (SIAM) in New Delhi, Tesla showed interest in bringing its suppliers to India.
After the meeting with PM Modi, Tesla in a statement, said that it hopes to establish its presence in India “as soon as humanly possible” in June.
Earlier, the Union Government had conclusively refused the Texas-based manufacturer’s demand for import duty cuts.
Ashwin Ambedkar, automotive analyst at Canalys said, “While many automakers are embracing software-defined vehicles, Tesla was born with this technology, resulting in less hardware and software complexity. This means that they will require fewer components than a typical EV in India.”
The Economic Times report further noted that Tesla also planned to seek help from new domestic suppliers for relatively less complex auto parts, showing its interest in local manufacturers to establish a robust supply chain in those markets.
“Tesla cannot manufacture a car by importing the components entirely. They have to depend on suppliers who can supply them locally over importing all components from another country. But there are certain core technologies that Tesla brings in for which they have very well-established partners whom they will use,” adding further Ambedkar said.
(Written by- Mahek Nigam
Edited by – Prateek Gautam)
