Tesla Inc.’s senior management executives plan to visit India in the coming week, says a report. The aim of this meeting is to involve federal government officials and discuss opportunities that will improve the company’s supply chain in India. The carmaker wants now to expand its supply chain management beyond China.
At present, Tesla manufactures the majority of its vehicles in China. Now the company wants to move beyond China and strengthen its supply chain in India. Tesla’s executives are planning to meet with potential suppliers as well in India and they are going to discuss the possibility of setting up a manufacturing plant in the country, as well as sourcing components locally.
Of late, Tesla has been facing challenges in India due to the country’s high import duties on electric vehicles. The company has said that it would need to reduce import duties in order to make its cars more affordable in India. The company also plans to check out the opportunity of local sourcing of components for car models of Tesla. As the plans are quite confidential in nature, the media sources have mentioned the meeting anonymously.
The visit by Tesla executives to India is seen as a positive sign for the company’s plans to enter the Indian market. The government of India has been supportive of electric vehicles, and it has offered incentives to companies that set up manufacturing plants in the country. Post the visit, there could be a turning point in the business relationship between Tesla and India. And people of the country will have much more awareness about the presence of Tesla’s electric vehicles post the meeting.
The idea is to make a way for potential future operations in India, which is one of the largest automobile markets in India. If Tesla is able to overcome the challenges in India, it could tap into a large and growing market for electric vehicles. The government of India has set a target of having 30% of all new vehicles sold in the country be electric by 2030.
India also aims to reduce dependence on fossil fuels and air pollution in the country. With the government’s interesting push to opt for electric vehicles, Tesla’s entry into the Indian market will be a lucrative opportunity for both parties. Tesla’s large-scale presence in India will also be in alignment with the government’s Make in India initiative wherein domestic manufacturing and sourcing of products and services are encouraged.
Also, this news comes as welcoming ground for foreign companies to enter India especially after Elon Musk made headlines last year by halting Tesla’s plans to venture into the Indian market. He had a long standoff with the government of India due to a decline in tariffs. However, now as times have changed, the visit by Tesla to India will be a positive development for the Indian electric vehicle market. It is a sign that Tesla is serious about entering the country, and it could help to accelerate the adoption of electric vehicles in India.