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Tesla company has shown interest in bringing its own supply chain in India ecosystem in India.
There have been discussions with union government officials about bringing Tesla's auto parts and electronics chain to India as part of a tax incentive scheme, according to sources. The move comes after Prime Minister Narendra Modi met with Elon Musk, the CEO of the US-based electric vehicle maker, during his visit to the US last month.
Despite the government's request to evaluate India's existing auto components supply chain, Tesla has expressed interest in bringing its own supply chain ecosystem to the country.
In the meetings, Tesla US and Tesla India executives also discussed the structure of incentives the company and its partners are likely to receive to bring their manufacturing unit to India along with the supportive ecosystem. Additionally, the executives asked about incentives and tax breaks the company might be able to take advantage of.
Besides meeting with government officials, the company has also met with industry executives. In a recent meeting of the Society of Indian Automobile Manufacturers (SIAM) in the capital, Tesla expressed its desire to bring its own suppliers to the country. Indian component manufacturers were backed by the industry body, which stated that the country has several mature and well-established auto players. According to Tesla, it relies on a certain level of quality standards that it can only replicate with its established partners and maintains its "all in-house" stance.
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Published On : 23 July 2021
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