Tesla Plans to Source $1.7-$1.9 Billion in Parts from India: Piyush Goyal

Tesla Plans to Source $1.7-$1.9 Billion in Parts from India: Piyush Goyal

Asif Iqbal | September 13, 2023 | 05:53 PM IST | Breaking News | Follow on Google News

Tesla Plans to Source $1.7-$1.9 Billion in Parts from India: Piyush Goyal

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in a significant development, Tesla, the electric vehicle giant, is set to procure components valued between $1.7 billion and $1.9 billion from India, with a substantial $1 billion already in their possession. This announcement was made by India’s Minister of Commerce and Industry, Piyush Goyal, during an auto conference.

Tesla’s Increasing Investment in India

At the 63rd Annual Session of the Automobile Component Manufacturers Association of India, Minister Piyush Goyal highlighted Tesla’s growing engagement with the Indian market. He shared, “Tesla already last year bought $1 billion of components from all of you sitting here. This year, their target is nearly $1.7 billion or $1.9 billion.” This signifies Tesla’s commitment to strengthening its supply chain in India.

Potential Factory for Low-Cost Electric Vehicles Recent reports from Reuters suggest that senior Tesla executives held discussions with Indian authorities about establishing a factory in India. This facility would produce a low-cost electric vehicle priced at approximately $24,000, marking a 25% reduction compared to Tesla’s current entry-level model. This move aims to cater to both the Indian market and international exports.

Trade Dynamics and Steel Imports Minister Goyal also addressed trade dynamics related to the automotive industry. He mentioned the possibility of taking retaliatory actions against countries that restrict access to Indian steel companies while exporting steel to India. Goyal’s concern centered on some companies importing automotive steel from their home countries. India still relies on imports for approximately 20% of its automotive steel requirements.

Investments and Market Size The Minister emphasized that investments flow into India primarily because of its vast market size. He stressed that encouraging investments does not mean compromising on the availability of locally produced goods that are competitively priced and of high quality.

Challenges in International Trade Minister Goyal urged the industry to scrutinize products coming into India from other countries under free trade agreements. He highlighted the presence of non-tariff barriers created by certain countries, which restrict the entry of goods from other nations. These barriers, both explicit and implicit, pose challenges to international trade.

Focus on Quality and Skilling As part of India’s efforts to boost its manufacturing and industrial capabilities, the Ministry is introducing quality control norms for various products. Additionally, there is a strong focus on skill development, up skilling, and retraining of the workforce to enhance productivity and competitiveness.

Asif Iqbal

Asif Iqbal is a seasoned news writer with a passion for delivering the latest updates to the public. Currently serving as the senior writer at VoM News, a prominent news outlet known for its comprehensive coverage of diverse topics, Asif has established himself as a reliable source of information. With a keen eye for detail and a knack for storytelling, he consistently provides readers with well-crafted articles that cover a wide range of news categories. His dedication to journalistic integrity and his commitment to staying ahead of the news curve make him an invaluable asset to Vom News, ensuring that readers are always well-informed on the issues that matter most. You can find his work and stay updated on current events by visiting vomnews.in.