Tesla to source US$ 1.9 billion auto parts from India in 2023

Tesla has already sourced auto components worth US$ 1 billion from India.

Commerce Minister Piyush Goyal, has revealed that US-based EV maker Tesla is interested in coming to India.

Goyal said that Tesla has already sourced auto components worth US$ 1 billion from India. By the end of this year, the company aims to source US$ 1.9 billion worth of auto parts from the country. “Expect that by 2030, there will be a compulsive economic composition for consumers to buy EVs” he added.

Tesla has had discussions with the Indian government over lowering import taxes on EVs. The company has also expressed interest in setting up a local manufacturing unit to build a new electric car that would be 25% cheaper than the current entry-level Tesla.

Tesla currently operates two factories outside the United States. In addition to the Shanghai and Berlin plants, the company is now building a new factory in Mexico.

In a recent meeting with Indian officials, Tesla executives discussed domestic sourcing of parts and incentives. However, the latest round of talks did not lead to a final proposal to set up a factory. That being said, Tesla CEO Elon Musk has stated that the company is likely to make a significant investment in India.

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