Elon Musk's Tesla eyes India to set up its supply chain: Report

U.S electric vehicle maker Tesla has held meetings with the Union government officials looking at options to set up its supply chain in India, reported The Economic Times. As per the report, Tesla discussed the possibilities of bringing its auto parts and electronics chain to India and of getting incentives and tax breaks in the process.

This comes a month after Tesla's CEO Elon Musk met Prime Minister Narendra Modi during his U.S trip. Musk also said that Tesla will be in India "as soon as humanely possible", soon after the meet.

The Tesla executives have expressed interest in bringing in their own ecosystem. However, as per Economic Times, the government has asked the company to evaluate the existing auto components supply chain in the country. An official also told the publication that they are confident of making a headway.

“We asked them about their specific needs and also urged them to consider sourcing their needs from the Indian ecosystem. But these companies have a well-oiled system of their suppliers. These are initial talks so we are hopeful of making some headway”, a senior government official told The Economic Times.

Along with this, Tesla executives also sought to know the structure of incentives and tax breaks the government would be willing to give to the company and its partners in order to bring its manufacturing unit to India along with the supportive eco-system.

Tesla has also been holding talks with the Indian industry executives. At the Society of Indian Automobile Manufacturers(SIAM) meeting, the company said that it would bring its own suppliers to India. Though it batted for Indian component manufacturers it emphasised on maintaining its “all in-house” stance and said it relies on a certain level of quality standards that can only be replicated with its established partners.