Tesla plans to double Indian component imports: Piyush Goyal

Trade Minister Piyush Goyal recently visited Tesla's manufacturing hub in Fremont, California, expressing delight in the growing role of Indian professionals within the company and the expanding import of components from India for Tesla's electric vehicles (EVs).

Goyal, during his visit, highlighted the contribution of Indian engineers and finance professionals in senior roles, underlining Tesla's evolving reliance on Indian auto component suppliers. He mentioned the company's trajectory to double its imports of components from India, building upon its previous aims.

Earlier this year, Goyal had projected Tesla's intentions to procure components worth $1.9 billion from India in 2023, compared to $1 billion in the previous year, signalling a significant upsurge in sourcing.

While Elon Musk, Tesla's CEO, couldn't join Goyal due to health reasons, Musk expressed regret and appreciation for the visit, aiming to meet at a future date.

This development comes after Musk's meeting with Prime Minister Narendra Modi in New York in June, where Modi encouraged Tesla to consider substantial investments in India. Musk had hinted at potential plans for an India visit in 2024.

Previously, Musk had expressed interest in setting up a manufacturing unit in India, contingent on the success of imported vehicles. However, Goyal had ruled out import duty concessions for Tesla, emphasizing the government's commitment to equitable policies for all stakeholders.

The Indian government has introduced production-linked incentives (PLI) schemes to foster the ACC battery storage and auto industries, urging Tesla's participation. Discussions initiated earlier this year when Tesla executives visited India, exploring manufacturing prospects for vehicles and batteries.

Presently, India imposes a 100% import duty on fully imported cars valued over $40,000 and 70% on those below this amount, posing challenges for Tesla's entry into the Indian market. Talks about potential duty cuts continue amidst efforts to encourage Tesla's investments and manufacturing endeavours in the country.

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