Tesla to Invest ₹15.76 Thousand Crore in Indian Auto Parts; ₹8.29 Thousand Crore Already Spent

Elon Musk’s EV company, Tesla, has set its sights on purchasing auto parts worth $1.7 to $1.9 billion (approximately ₹14.10 to ₹15.76 thousand crore) from India this year. This information was confirmed by Union Minister Piyush Goyal while addressing the 63rd annual session of the Automotive Component Manufacturers Association of India.

He mentioned that Tesla has already purchased $1 billion (approximately ₹8.29 thousand crore) worth of parts from India previously. I have a list of companies supplying Tesla in my possession. This year, Tesla is planning to continue its imports as part of its annual procurement. Goyal also revealed that customers will be able to purchase Tesla vehicles in India by 2030 as part of the economic development commitment.

Tesla is seeking to establish a manufacturing plant in India. According to media reports, Tesla officials held a meeting with Indian government officials on May 17th. During this meeting, the company expressed its desire to set up a manufacturing unit in India to produce electric cars.

Officials informed the Tesla team that the government is preparing to establish a domestic vendor base but emphasized that Tesla will need to allocate a specific time slot for this purpose.

Last year, there were no discussions between Tesla and the Indian government. Tesla had expressed its intention to come to India, but the company and the government did not engage in any dialogue. Tesla had requested a reduction in the import duty on completely assembled vehicles from 100% to 40%. The government stated that there was no intention to grant exemptions or reductions on the import duty for electric vehicles imported from other countries.

The government mentioned that if Tesla is committed to establishing a manufacturing plant in India, then considerations for exemptions on imports might be explored. However, Elon Musk had stated that Tesla would not set up manufacturing plants where there is no permission for selling cars and providing service.

In a tweet on May 27, 2022, Elon Musk had stated, Tesla will not establish manufacturing plants where it cannot sell cars and provide service.

Akash Shrivastav

My name is Akash Shrivastav, and I am a Blogger. I have 8 years of experience in blogging for Finance, Business, Investment, Stock Market, Cryptocurreny and more. Through my writing, I aim to provide readers with insightful and informative content.