Tesla, the world’s largest electric vehicle maker, is once again interested in India. Officials from the U.S.-based electric car maker will reportedly meet Indian officials in New Delhi over the next two days. The meeting comes days before Prime Minister Narendra Modi’s visit to the United States next month. While no one has formally confirmed the meeting between Tesla executives and government officials, Reuters has confirmed the news, citing “sources with direct knowledge of the matter.”
The issues on the table are ripe. The meeting was called to “discuss local sourcing of components and other issues,” Reuters reported, citing sources. In other words, Tesla is looking to locally source electric vehicle components for Tesla models. The electric car maker typically relies on China for such components. However, according to a Bloomberg report. Tesla’s goal is to “deepen the automaker’s supply chain in China while pushing to diversify outside of China”.
Tesla’s renewed interest in India comes nearly a year after the electric carmaker all but shelved the idea of launching its models in the country. Tesla CEO Elon Musk himself announced the decision after India rejected the electric carmaker’s request to reduce import duties on its electric vehicles. The center has made it clear that it wants Tesla to set up a manufacturing facility here before it is allowed to sell its electric vehicles in India.
Elon Musk has said tariffs on imported cars are among the highest in the world, but has denied that the Center’s plans will be followed. He has said, “Tesla will not put a manufacturing plant anywhere that doesn’t allow us to sell and service cars in the first place.” Made after sale in India.
Earlier, Tesla deployed a team in India to find showrooms and launch its potential EV business in the country. It was later dropped after Musk hinted that Tesla was not interested in doing business in India.
India currently imposes duties ranging from 60% to 100%, depending on engine size and cost, insurance and freight (CIF) value below or above $40,000.
First published date: May 17, 2023 at 09:39 AM CST