Tesla Plans To Source Parts Worth $1.7-$1.9 Billion From India: Piyush Goyal

Tesla plans to acquire parts from India worth at $1.7 to $1.9 billion, said Piyush Goyal, Union Minister of Commerce and Industry. Goyal further emphasised that in the previous year, Tesla had already purchased parts from India for $1 billion.

Speaking at the annual convention of the Automotive Component Manufacturers Association (ACMA), Goyal indicated that the volume of imports will almost double from the $1 billion in automotive components that Tesla imported from India last year.

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Tesla last year already bought $1 billion worth of components from India... this year their target is $1.7-$1.9 billion," Piyush Goyal said.

"I am convinced that this (EVs) is the future. It is something we must try to attract," he added.

The shift in Tesla's strategy shows a readiness to produce domestically, overcoming prior challenges connected to import duties on EVs. In May, business executives travelled to India to start discussions about establishing factories to produce both batteries and vehicles.

Tesla initially intended to enter the Indian market in 2021 by pushing for a reduction in the import tariff on electric vehicles (EVs) that was then 100 percent. Tesla and the Indian government had been in talks, but the negotiations broke down when the government said that the business needed to commit to local manufacture first.