Union Commerce and Industry Minister Piyush Goyal, visiting Elon Musk's Tesla factory in Fremont, California, announced that Tesla intends to increase its imports of components from India. This development aligns with India's recent relaxation of import tariffs, demonstrating efforts to facilitate Tesla's entry into the Indian market.
India’s Commerce and Industry Minister, Piyush Goyal, visited Tesla’s manufacturing facility in Fremont, California, announcing that the electric vehicle giant intends to double its imports of auto components from India. Goyal, currently on a four-day visit to the US, shared this update after Tesla’s CEO, Elon Musk, met with Prime Minister Narendra Modi in June in New York. Musk expressed his plans to visit India in 2024 following the meeting.
During the visit, Minister Goyal emphasized the growing importance of Indian auto component suppliers within Tesla’s electric vehicle supply chain. He specifically mentioned Tesla’s plan to double its imports of components from India. Minister Goyal acknowledged the absence of Elon Musk, Tesla’s CEO, during the visit and extended wishes for his swift recovery.
This visit assumes significance against the backdrop of reports indicating India’s consideration of customs duty concessions for Tesla as the company explores the potential establishment of a manufacturing plant in the country. In September, Minister Goyal stated that Tesla aims to procure components valued at around USD 1.9 billion from India in the current year, a notable increase from the USD 1 billion in 2022.
Anticipation is building in India as the government reportedly accelerates approvals for Tesla’s entry into the market. The government has introduced production-linked incentive (PLI) schemes for advanced chemistry cell (ACC) battery storage, as well as the auto, auto-components, and drone industries, with significant financial allocations.
Commerce and Industry Minister Piyush Goyal clarified that there is no separate policy in the works for Tesla; instead, the government encourages the company to utilize support measures available under existing schemes like PLI for auto and advanced chemistry cells.
In a recent development, the Prime Minister’s Office (PMO) has instructed all relevant ministries to expedite the clearance of necessary licenses and documents for Tesla, prioritizing them.
Discussions are also underway regarding potential reductions in import duties for completely built-up electric vehicles (EVs) to facilitate Tesla’s entry into the Indian market.