Tesla may source parts worth $1.9 bn from India this yr: Goyal
The minister said that going forward, demand for electric vehicles will increase and it will help in pushing the growth of the sector.
Electric vehicle maker Tesla is looking to source components worth around $1.9 billion from India this year, commerce and industry minister Piyush Goyal said on Wednesday.
The minister said that going forward, demand for electric vehicles will increase and help the sector grow.
“Tesla already last year bought $1 billion of components from I think all of you sitting here,” he told members of the Automotive Component Manufacturers Association of India (ACMA).
“I have the list of companies who supply to Tesla. This year their target is nearly $1.7 billion or $1.9 billion (is) what they mentioned,’’ he said at an annual session of ACMA.
The electric vehicle (EV) market in India is on the rise amid rising fuel costs.
With over 2.8 million EVs already on its roads, India’s EV market is poised for a staggering 94.4% CAGR growth by 2030. As global and local automakers intensify their presence in this segment, the valuation of India’s EV market, which stood at $3.21 billion in 2022, is expected to soar to $114 billion by 2029.
Asked about foreign firms looking to invest in India as part of their China-plus-one strategy, Goyal said global companies are coming to India because of its attractiveness.
‘’I totally debunk and reject the China-plus-one theory. That’s not what is going to drive India...India of today stands on its own feet. The India of today has offerings for the rest of the world, both for investment and trade.’’
Goyal added that India provides them a good business environment, skills, managerial talent, a big market, and demand generated by 1.4 billion people.
However, foreign direct investment (FDI) equity inflows dropped 34% to $10.9 billion during the June quarter from the year-ago period, as per official numbers. The drop was primarily due to a slowdown in the West.
‘’It’s a rules-based economy, it’s a young democracy, one of the fastest growing large economies. All of this makes it a compulsive investment destination.
‘’Therefore, companies around the world have gone beyond the China-plus-one story, they have gone beyond the ABC philosophy of ‘anything but China’, they have gone beyond friend-shoring or near-shoring and are looking at India as a trusted partner.”
In many cases, for example taxis, and public transport buses, India is already seeing electric vehicles becoming a compulsive investment case.
(With PTI inputs)
Catch all the Business News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
MoreLess
First Published:14 Sep 2023, 12:31 AM IST
- Top Gainers
- Top Losers
- 52 Week High