US-based automaker Tesla Inc is interested in coming to India and is aiming to source USD 1.9 billion worth of auto parts from the nation this year, Commerce Minister Piyush Goyal said on Wednesday.
Goyal, at an auto conference, claimed that Tesla has already sourced parts worth USD 1 billion from India. “Expect that by 2030, there will be a compulsive economic composition for consumers to buy EVs,” he said.
Tesla first tried to enter India in 2021 by pushing officials to lower the 100% import tax for EVs. Last year, the talks between Tesla and the Indian government collapsed when officials conveyed the company would have to first commit to local manufacturing.
More recently, Tesla has told Indian officials it is keen to sup a local factory and make a new EV priced around USD 24,000, roughly 25% cheaper than its current entry model, for both the Indian market and export.
Tesla’s senior public policy and business development executive Rohan Patel has in recent weeks met top officials privately. Prime Minister Narendra Modi, who held talks with CEO Elon Musk in June, has been tracking progress closely, Reuters has reported.
Outside the United States, Tesla currently has a plant in Shanghai – its largest factory worldwide – and one outside Berlin. It is building a new plant in Mexico that will focus on a new mass-market EV platform Musk has said will slash costs for consumers.
Tesla Inc. is likely to make a significant investment in India, Musk said after meeting with Modi during the Indian PM’s US visit to promote development in the world’s most populous country.
“I’m confident that Tesla will be in India and we’ll do so as soon as humanly possible,” Musk told reporters after the meeting. “We don’t want to jump the gun on an announcement, but I think it’s quite likely that there will be a significant investment, a relationship with India.”
Tesla and India revived discussions in May following a year-long stand-off. While Tesla executives talked about the domestic sourcing of parts and incentives with government officials during a recent India visit, it didn’t culminate in a proposal to set up a plant.
