Tesla will be in India very soon. Sound interesting, right? India may be amenable to allowing Tesla’s international suppliers, especially those from China, to manufacture crucial components there. According to reports, the government is unwilling to offer any corporation unique exemptions.
According to the study, this move is noteworthy because China is relied upon for imports of essential parts like battery cells used in electric vehicles.
High-ranking Tesla executives are presently traveling to India to actively engage with various government stakeholders and gather valuable insights into the local market. The group includes essential public policy, supply chain, and business development team members.
Roshan Thomas, vice president of global supply chains at Tesla, and Rohan Patel, vice president of public policy and business development, both stationed in Washington, are in charge of the meetings.
According to reports, Tesla executives met with Piyush Goyal, the minister of commerce and industry, to discuss the benefits and incentives for encouraging the sales of their electric vehicles in India. Additionally, the officials joined in on the fun at the ministry-hosted opening of the Bharat Mandapam complex of the India Trade Promotion Organisation, which was graced by the presence of Prime Minister Modi and Minister Goyal.
Tesla officials discussed the possibility of importing their electric vehicles from the Berlin Gigafactory expressly for the Indian market during earlier talks with the Ministry of Heavy Industries.
The government’s stance on not tolerating any special tax rates for a single original equipment manufacturer, however, remains unwavering. In fact, it was suggested to the business to research the assembly procedures used by reputable luxury producers like Mercedes Benz India and BMW in the nation. This advice was intended to shed light on how the neighborhood ecosystem operates.
An anonymous government official who participated in the deliberations said, “We cannot grant one corporation a benefit when other brands pay whole duty on imports. Additionally, several premium automakers manufacture in India using imported parts with little added domestic value. However, Tesla cannot and wants to recognize India because it is a significant market for the corporation.
Growing Trends for EVs in India
Despite obstacles, Tesla plans to increase its global automobile sales from 1.31 million in 2022 to 20 million by 2030.
With a total of 1.86 million units sold, BYD was the world’s largest seller of EVs and plug-in hybrids in 2022, with the great majority going to China. In terms of sales of all-electric vehicles, it is behind Tesla.
According to Gaurav Vangaal of S&P Global Mobility, “Tesla sees competition primarily with BYD, and both are expanding globally at a great speed.”
“If they want volumes, they have to come to India,” he added, noting that the country can act as a base for exports because the government is encouraging businesses to produce EVs locally.
According to projections by S&P Global Mobility, India’s annual output of light electric vehicles would increase to 1.4 million by 2030, or about 19% of the 7.25 million overall predicted production. In 2022, it was less than 50,000.
Tata Motors, a local manufacturer, dominates India’s developing EV market. Its best-selling Nexon EV has a starting price of $19,000, while BYD’s Atto 3 and the ZS EV from MG Motors start at $28,000 and $41,000, respectively.
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