New Delhi : Tesla, the American electric vehicle manufacturer of the world’s billionaire industrialist Elon Musk, wants to grow its business in India on the lines of electronic goods and mobile maker Apple. According to a media report, Tesla is exploring the possibilities of setting up a manufacturing plant and starting its business in India to manufacture electric cars and its batteries. The report states that the American electric car maker has been asked by the Indian government to emulate tech giant Apple in finding local firms to partner with any Chinese suppliers involved. The biggest thing is that Tesla’s Chief Executive Officer (CEO) Elon Musk wants to expand the company’s foreign business out of China and his eye has been on India’s consumerist market for a long time.
Tesla is discussing with the government
According to a Reuters report, this news has come at a time when the American auto major has been in discussion with the Indian government and officials for several weeks about setting up a local production plant. According to information being received from sources, Tesla is preparing to produce the much-awaited Rs 20 lakh car in India. Meanwhile, the biggest challenge before Tesla is to establish Chinese suppliers along with entering India. After the India-China border dispute since June 2020, diplomatic relations between the two countries have soured, due to which many challenges may arise in front of Tesla.
Entry of Chinese companies in India difficult
A report by news agency Reuters claimed that in a meeting with government officials in New Delhi, Tesla representatives informed the Indian government that it would allow some vendors from China to set up a base locally to boost its supply chain. Would like to The report further states that in response, government officials told Tesla that Chinese companies have been under intense scrutiny since the border dispute between the two countries in 2020, making it difficult to grant approval for wholly owned Chinese companies in India. Could. It also suggests that Indian officials suggested a solution, in which Tesla would emulate Apple’s approach. In recent months, the US tech giant has received approval to bring Chinese suppliers to India after finding a local joint venture partner.
Challenge to bring Chinese suppliers to India
Tesla and its CEO Elon Musk have expressed interest in setting up a local production facility in India. Along with this, it is expected that the company will produce its cheapest car ever in India, which will be sold in the country and also exported to other overseas markets. However, the biggest challenge for Tesla is to bring Chinese suppliers to India due to tensions in the geopolitical relations between India and China.
Elon Musk wants to expand in foreign business
The report claimed that Elon Musk, CEO of American automaker Tesla, wants to expand his overseas business beyond China, where there is a delay in getting regulatory approval for expansion. India emerged as one of the major contenders among the options for this, as the country has expressed its interest in hosting the new Tesla plant in Asia. However, if Tesla has to set up a plant in India and control costs to produce affordable electric vehicles, the issue of Chinese suppliers is going to be critical.
Suppliers of spare parts for electric vehicles are not available
When it comes to electric vehicles, India does not have local suppliers for major electric vehicles such as battery cells. Even India’s largest electric car maker Tata Motors is importing its EV batteries from China. Tesla is reportedly seeking a different ecosystem for its Chinese vendor base, but it can only avail of those approvals on a case-to-case basis, with the condition that if a joint venture in India can be started.