Tesla plans to increase component purchases from India amid talk of setting up a factory in the country. According to the minister, this year the company intends to purchase components worth up to $1.9 billion, which is almost double the amount last year.
Tesla plans to buy components worth $1.7 billion to $1.9 billion from India this year, Commerce Minister Piyush Goyal said on Wednesday. His comments come as the government and the company are negotiating to build an electric vehicle factory in the country. The purchase amount is almost double that spent in 2022. The minister noted that he is pleased with the development of electric vehicles and believes that they are the future.
“Tesla last year already bought $1 billion worth of components from India... this year their target is $1.7-$1.9 billion,” Goyal said at an auto conference, according to Reuters. “I am convinced that this (EVs) is the future. It is something we must try to attract,” he added.
Negotiations between Tesla and the Indian government are ongoing. However, at the moment, no official announcements have been made. Several reports, which cited unnamed sources, said the talks were progressing well. It was reported that both sides are finding more and more compromises, which could ensure Tesla's successful entry into the Indian market.
It is reported that the Texas manufacturer intends to build a factory in India to produce its next-generation cars. It would be an affordable car costing around $24,000. With this product, the company could have great success in the world's most populous country. In addition, the car would be exported, and thanks to this, India would become Tesla's second export hub after Giga Shanghai. Deliveries are expected to be made to all countries in Eurasia and nearby countries where Tesla has a presence. Deliveries in North America will be made from Giga Texas and the upcoming Giga Mexico.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.