By India Blooms News Service Sep 14, 2023
New Delhi: Electric car company Tesla Inc is looking to source automobile components worth $1.7-1.9 billion this year from India, double the value of components imported by the car maker last year, Union Commerce Minister Piyush Goyal said on Wednesday.
Tesla last year already bought $1 billion worth of components from India... this year their target is $1.7-$1.9 billion, Goyal said while addressing the annual convention of the Automotive Component Manufacturers Association (ACMA), reported Reuters.
I am convinced that this (EVs) is the future. It is something we must try to attract, news agency Reuters further quoted him as saying.
The Indian auto components industry, constituting 2.3 percent of the nations GDP, is projected to ascend to the position of the worlds third-largest by 2025, as per government forecasts.
Minister Goyals comment on Teslas intentions to ramp up imports follows reports from two months ago, stating that the Elon Musk-led electric vehicle manufacturer had engaged in discussions with the Indian government.
According to the report, Musk discussed the potential establishment of its automotive parts and electronics chain in India, potentially benefiting from incentives and tax advantages.
Despite the governments request for an evaluation of the existing auto components supply chain in the country, Tesla has expressed interest in establishing its own supply chain network in India, as reported by the Economic Times on July 13.
After meeting Prime Minister Narendra Modi during his trip to the US in June, Tesla chief executive Elon Musk had said: He (PM Modi) really cares about India because hes pushing us to make significant investments in India, which is something we intend to do.
Musk also called himself a fan of Mr Modi and said that India had more promise than any large country in the world.
In May of this year, Tesla executives engaged in talks with senior Indian officials and ministers regarding the potential establishment of a manufacturing facility for cars and batteries in India.
The worlds leading electric car manufacturer postponed its plans to enter the Indian market due to the prohibitive import tax structures in place, according to reports.