A delegation of senior Tesla Inc. executives will travel to India this week to meet with federal government officials in a renewed effort to strengthen the carmaker's supply network in the country as it seeks to diversify beyond China.
The executives are expected to meet with government personnel, including those from Prime Minister Narendra Modi's office, to explore local sourcing of components for Tesla's models, according to sources familiar with the situation, who asked not to be identified because the preparations are secret.
This visit could be a watershed moment in India's relationship with Tesla, as the electric vehicle maker has yet to build a big footprint in the nation.
Tesla hopes to prepare the way for potential future operations in one of the world's largest vehicle markets by interacting with Indian authorities.
India has actively promoted the use of electric vehicles to tackle air pollution and reduce reliance on fossil fuels.
With the Indian government's push towards electric transportation, Tesla's entry into the market might be a win-win situation for all parties.
Tesla's decision to expand its supply chain in India aligns with the Indian government's "Make in India" strategy, promoting domestic manufacturing and sourcing.
This move not only enables Tesla to diversify its operations away from China but also contributes to the fulfilment of the government's vision.
The anticipated visitors from Tesla to India comprise high-ranking executives and managers from various departments such as supply chain, production, and business development based in Austin, Texas.
According to the sources, the executives would restate Tesla's appeal for India to reduce import duties on its automobiles.
Outside of US office hours, Tesla did not react to an email addressed to the press address on its website. Requests for feedback from the Ministry of Road Transport and Highways went unanswered.
Sourcing more from India might help Tesla win Modi's approval as he attempts to turn India into a global manufacturing hub.
While Tesla has struggled to establish itself in India, global rivals such as Mercedes-Benz AG have taken attempts to market locally-built vehicles.
To be sure, Tesla is still far from considering India as a location for manufacturing its high-end vehicles. Musk has stated that his company will not establish production factories in any location where it is not first permitted to sell and service its vehicles.
