It is interesting to hear about the potential visit of senior Tesla executives to India and their meetings with government officials. While the purpose of the visit has been kept private, it is speculated that discussions will focus on local sourcing of components for Tesla electric cars.
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Import taxes
Tesla has previously expressed concerns about high import taxes imposed on cars in India. The Indian government has also urged the company to avoid selling vehicles manufactured in China. In the past, Tesla CEO Elon Musk said the company would not establish manufacturing units where it cannot first sell and service its vehicles.
Given the ongoing trade tensions between the United States and China, many American companies, including Tesla, are exploring alternatives outside China. The visit to India by senior Tesla executives could indicate a potential interest in expanding their presence in the Indian market. However, with official confirmation and further details, it is easier to speculate on the specific outcomes of these meetings or the company’s plans for manufacturing in India.
Make in India
In efforts to attract foreign investment and promote domestic manufacturing under Prime Minister Narendra Modi’s “Make in India” initiative. The government has implemented various policies and incentives to encourage multinational companies to set up manufacturing facilities in the country.
However, Tesla has faced challenges in establishing a solid presence in India. The government has shown reservations about Tesla selling vehicles assembled at its Shanghai factory in the Indian market, possibly due to concerns about job creation and local manufacturing.
Sourcing more components or manufacturing locally in India could be a strategic move for Tesla to win favour with Prime Minister Modi and his administration.
Alignment
By increasing its reliance on Indian suppliers and manufacturers, Tesla would align itself more closely with the government’s vision of making India a global manufacturing hub.
Tesla’s response to the email sent to its press address outside US office hours does not indicate its stance or efforts in India. It could be a matter of timing or logistical challenges in responding promptly to international inquiries.
Source: ET
