New Delhi: Senior Tesla Inc. executives are planning to visit India this week in order to meet Indian government officials in a newfound bid to enhance the carmaker’s supply chain in India as the company looks forward to diversify beyond China.
In visitors, C-suite executives, and managers from Austin, Texas-based Tesla’s supply chain, production and business development teams are to be included.
The executives are organized to meet with government representatives including people from the office of Prime Minister Narendra Modi to talk about local sourcing of components for Tesla’s models, as per people close to the matter.
This meeting could be seen as a way to loosen up the relationship between India and Tesla, which has yet to be entered in India in a meaningful way.
On the other hand, Chief Executive Officer Elon Musk has criticised India for its policies on high import taxes and electric vehicles, which India in response gave advice to Tesla not to sell cars in India which are manufactured in China, its political opponent.
India wants Tesla to buy $500 million worth of Local Auto parts.
What does Elon Musk think?
If India approved Tesla to enter the county, it would be beneficial much more on the company’s hands as it will be like betting on rising demand for EV vehicles in the world’s most populous country and an automobile market with an abundance of growth potential.
Meanwhile, Tesla is still thinking about making India a base for assembling its pricey cars. Earlier, Musk made it very clear that his firm won’t be setting up manufacturing plants in any location where it isn’t allowed to sell and service firsthand16 its vehicles.
However, Us companies are steadily realising India’s market potential and pivoting beyond China as trade tensions between Washington and Beijing show no signs of easing.
