Elon Musk's EV company Tesla has set a target of purchasing auto parts worth 1.7 to 1.9 billion dollars (about ₹ 14.10 thousand crore-₹ 15.76 thousand crore) from India this year. This information was given by Union Commerce and Industry Minister Piyush Goyal while addressing the 63rd Annual Session of the Automobile Component Manufacturers Association of India.
He said that Tesla has already purchased parts worth 1 billion dollars (about Rs 8.29 thousand crore) from India. I have a list of companies that supplied Tesla. This year Tesla is going to double its imports as compared to last year. Goyal said there will be a binding economic structure for customers to buy EVs by 2030.
Tesla wants to set up a manufacturing plant in India. According to media reports, Tesla officials had a meeting with Indian government officials on May 17. In this meeting, the company had expressed its desire to set up a manufacturing unit to make electric cars in India.
Officials had told the Tesla team that the government is ready to give time to establish the domestic vendor base, but Tesla will have to give a confirmed time slot for this.
Last year, Tesla had expressed its desire to come to India, but talks could not be reached between the company and the government. Tesla had demanded the government to reduce the import duty on fully assembled vehicles from 100% to 40%.
The company wanted its vehicles to be considered electric vehicles and not luxury, but the government had said that it had no intention of waiving or reducing the import duty on any electric vehicles imported from other countries.
The government had said that if Tesla commits to setting up a manufacturing plant in India, then exemption on imports will be considered. However, Musk wanted that cars should be sold in India first, after which the idea of setting up a plant would be considered.
Also replying in a tweet on May 27, 2022, Elon Musk had said, 'Tesla will not set up a manufacturing plant at any location where it does not already have permission to sell and service cars.'
Three months ago in June, Elon Musk met Prime Minister Modi in New York. After meeting PM Modi, when asked about the timeline of Tesla coming to India, Musk had said, 'I am confident that Tesla will be in India soon.'
Musk is also going to visit India next year i.e. in 2024.