Tesla to assemble electric cars in India: Report
- Elon Musk, CEO at Tesla, said the location of the EV maker's new factory is likely to be finalised before the end of this year. He hinted that it could be in India as he expressed interest in setting up business in the country.
Talks of Tesla's entry in India is gathering further strength as the world's largest electric vehicle manufacturer has reportedly expressed interest in setting up a manufacturing facility in the country. In the latest such report, Tesla is keen on assembling electric cars locally and set up a local vendor base too. According to report published by Mint, the US-based EV maker is aiming to integrate its manufacturing and supply chain processes before a possible India launch.
Tesla currently uses its vendor base in China, which is the EV maker's biggest market outside its home base. Tesla will require to relocate vendors if and when it decides to start manufacturing in India. Earlier in May, Tesla executives met Indian officials in Delhi for two days to discuss the matter. The EV maker reportedly proposed to set up its manufacturing facility besides ensuring components in an attempt to diversify from China.
Elon Musk, CEO at Tesla, had said the location of the EV maker's new factory is likely to be finalised before the end of this year. He hinted that it could be in India as he expressed interest in setting up business in the country. Tesla's proposed India GigaFactory will be aimed to manufacture electric cars locally which will also be used for exports in Asian and other markets.
Earlier, Union Minister Rajeev Chandrasekhar was quoted by news agency Reuters saying, "They are very seriously looking at India as a production and innovation base." However, reports claim that Tesla stopped just short of committing a factory in India during the meeting between its executives and government officials.
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Previous talks between Tesla and the Centre ended in a deadlock after the government refused to entertain the EV maker's demand to lower import duties. Centre had advised Tesla to set up a local manufacturing plant if it wanted to sell EVs in India. Union Minister Nitin Gadkari had said Tesla will be welcome to India if it manufactures EVs locally and not import them from China.