According to some sources, Tesla is planning to locally source EV components for Tesla models. Tesla aims to ‘deepen the carmaker’s supply chain in the country as it pushes to diversify beyond China.
Tesla’s renewed interest in India comes almost a year after the EV maker practically stalled the idea of launching its models in the country. The decision, announced by Tesla CEO Elon Musk himself, came after India refused to entertain the EV maker’s plea to reduce lower import taxes on its electric cars. The Centre had clearly outlined that it expects Tesla to set up its manufacturing facility here before it will be allowed to sell its EVs in India.
Elon Musk, who said customs duty on imported cars is the highest in the world, denied to follow Centre’s plan. He had said,”Tesla will not put a manufacturing plant in any location where we are not allowed first to sell and service cars.” His reaction came after Tesla went through ‘a lot of challenges with the government’ to push for sales of its products in India. Earlier, Tesla had deployed a team in India to look for showroom and front its potential EV business in the country. It was later abandoned after Musk hinted Tesla is not interested to set up business in India. India currently levies customs duty ranging from 60% to 100%, depending on engine size and Cost, Insurance and Freight (CIF) value less or above $40,000.
