Tesla Inc, based in California, is interested in expanding into India and plans to source $1.9 billion in auto parts from the country this year, Commerce Minister Piyush Goyal said on Sept 13.
Goyal claimed at an auto conference that Tesla has already sourced $1 billion in parts from India. "By 2030, expect a compulsive economic composition for consumers to buy EVs," he predicted.
Tesla attempted to enter India for the first time in 2021 by lobbying officials to reduce the 100% import tax on EVs. Last year, talks between Tesla and the Indian government broke down after officials stated that the company would have to commit to local manufacturing first.
Tesla has recently informed Indian officials that it wishes to establish a local factory and produce a new EV priced around $24,000, roughly 25% less than its current entry model, for both the Indian market and export.
Rohan Patel, Tesla's senior public policy and business development executive, has met with top officials privately in recent weeks. Prime Minister Narendra Modi, who met with CEO Elon Musk in June, has been closely monitoring progress, according to sources.
Outside of the United States, Tesla currently operates two factories: one in Shanghai, China, and one outside of Berlin, Germany. It is constructing a new plant in Mexico that will focus on a new mass-market EV platform that Musk claims will reduce consumer costs.