Quick edit: Tesla’s entry?
- Talk of Tesla’s entry has been going on for some time, and there could yet be a slip between the lip and the cup
Elon Musk’s Tesla has reportedly agreed in-principle to set up an assembly unit in India, and it also plans to have a vendor base here. To be sure, talk of Tesla’s entry has been going on for some time, and there could yet be a slip between the lip and the cup. But if the plan materializes, it could be a big win for the government. The company wanted to import fully-built units initially and was seeking duty cuts. But New Delhi may have prevailed by having it to agree to assemble. The marquee brand could serve as a showcase as it tries to woo global manufacturers. Not to mention the shot in the arm it could lend India’s EV ecosystem, which has a long way to go to be able to support the scale of mobility transition India is aiming for. Tesla’s products are known for performance and practicality, and their manufacture here could help develop the industry’s capabilities in batteries and other components. Challenges remain, though. Establishing a vendor base may require its suppliers in China—where most of its global production takes place—to operate here. That may run afoul of the Indian government’s watch on Chinese investments, unless they find local partners.
Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
MoreLess
First Published:7 Jun 2023, 11:53 PM IST
- Top Gainers
- Top Losers
- 52 Week High