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Business News/ Companies / News/  Tesla plans to source parts worth $1.7-$1.9 billion from India: Piyush Goyal

Electric vehicle maker Tesla Inc plans to source components worth $1.7-$1.9 billion from India and has already sourced parts worth $1 billion, India's trade minister Piyush Goyal said at an auto conference .

Addressing the Annual Session of the 63rd Automobile Component Manufacturers Association of India, Union Minister Piyush Goyal says, “...Tesla already last year bought $ 1 bn of components from all of you sitting here. I have a list of companies who supplied to Tesla. This year their target is nearly $ 1.7 bn or $ 1.9 bn..."

News agency Reuters reported last month that Tesla's senior executives met the minister with an interest in building a factory in India that would produce a low-cost electric vehicle (EV) priced at $24,000, around 25% cheaper than Tesla's current entry-level model, for both the Indian market and export.

The minister also said that the government may have to take retaliatory action against countries that do not allow access to Indian steel companies but are permitted to send the metal to India.

Goyal was referring to some companies importing automotive steel from their parent country.

The auto industry is still dependent for 20 per cent of its requirement on imports and this dependence varies across companies which shows that some of them are importing by choice..

Further, the minister dismissed the contention of some of the global auto firms which say that they bring investments into India.

"Investments come to India because of its market size," he said adding bringing investments into India does not mean that "we would have to continue to import goods into India that are available locally at a competitive price and of very high quality.

He also slammed the practice of some companies who route their investments from one geography and import components and inputs from third countries that are "not very" friendly to India.

He said India may also have to look at products coming from other countries at zero duty under the free trade agreement more carefully to see whether there is a level playing field between Indian suppliers and the countries from which their products are coming.

"Non-tariff barriers created by some countries, written or unwritten, by which they get together not to allow goods from other countries those are areas of concern," the minister added.

Goyal added that the industry should trust the domestic ecosystem and " I am not against imports per se".

He said that his ministry is bringing quality control norms for different products.

He also suggested increasing R&D and design capabilities.

"We are also concerned about the skilling, upskilling and re-training of our workforce," the minister said urging the industry to work on this.

*With Agency Inputs

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Updated: 13 Sep 2023, 04:44 PM IST
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