Tesla Ready To Setup Vendor Base in India Apart From Starting Manufacturing Unit: Report

Mumbai, June 7: Recent reports hinted that the Indian government suggested Tesla set up a vendor base in India alongside a manufacturing/ assembly unit.

The Elon Musk-led company has agreed to the Centre’s suggestion. It is expected to set up a domestic vendor base quickly as it does not believe in decoupled manufacturing and supply chains. Tesla Announce All New Model 3 Cars Qualify for USD 7,500 Electric Vehicle Tax Credit in US.

As of now, the majority of Tesla’s global production happens in China (Shanghai). If it starts a manufacturing base in India, the relocating vendors would then need to form joint ventures with Indian firms. India no longer supports 100% Chinese investments.

During a recent meeting, the Indian government asked Tesla to submit a roadmap on the time frame needed by it to set up a domestic supply chain. It is likely to submit the same in the next three to six months time.

The Tesla team visited India last month. The government stated that it is willing to offer import concessions on the components required for the domestic plants under the phased manufacturing programme (PMP).

The government may bring a modified PLI scheme for electric vehicles and advance chemistry cell batteries. Tesla To Offer Access to a Part of Its Supercharger Network to Non-Tesla EVs in Canada.

On the other hand, Tesla is no longer asking for lowering import duty on completely built units. However, Elon Musk recently visited China. He is expected to retain its investments in the country.

(The above story first appeared on LatestLY on Jun 07, 2023 09:29 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website todaynews24.top).

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