Tesla to assemble EVs in India: Report

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Discussions about Tesla’s entry into the Indian market are intensifying after the world’s largest electric carmaker reportedly expressed interest in setting up a manufacturing plant in the country. In the latest such report, Tesla is keen to assemble electric vehicles locally and build a local supplier base. According to a report published by Mint, the US-based EV maker aims to integrate its manufacturing and supply chain processes ahead of a possible India launch.

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| Updated on: June 8, 2023 at 10:07 am

Nearly a year after Tesla Chief Executive Elon Musk all but abandoned the idea of ​​launching the electric carmaker in India due to high import duties, the company is reconsidering a new offer.

Tesla currently uses its supplier base in China, the electric carmaker’s largest market outside of its home base. If Tesla decides to start production in India, then it will need to relocate suppliers. In early May, Tesla executives met with Indian officials for two days in Delhi to discuss the matter. The electric car maker is reportedly proposing to build its manufacturing plant in a bid to diversify from China, in addition to securing parts supplies.

Tesla Chief Executive Elon Musk has said the site for the electric carmaker’s new factory could be finalized by the end of the year. He hinted that it might be in India, as he expressed interest in doing business in the country. Tesla’s proposed Gigafactory in India aims to manufacture electric vehicles locally, which will also be exported to Asia and other markets.

Earlier, Reuters quoted Union Minister Rajeev Chandrasekhar as saying, “They take India very seriously as a production and innovation base.” Promised to build a factory in India.

Tesla’s previous talks with the center stalled after the government rejected the electric carmaker’s request to reduce import tariffs. If Tesla wants to sell electric vehicles in India, the center has suggested that Tesla build a local manufacturing plant. India’s Union Minister Nitin Gadkari has said that India would welcome Tesla if it produced electric vehicles locally instead of importing them from China.

First published date: June 8, 2023 at 10:07 AM CST

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