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ShreeMetalPrices: Tesla executives will meet Indian officials this week in order to discuss & diversify operations


According to a report on Tuesday. Senior Tesla executives would meet with Indian government representatives on Wednesday & Thursday to discuss topics like local part procurement.

The news came as the Elon Musk-led electrical vehicle manufacturer. Which has been interest in India for the past year, has voiced its reservations about the country’s high import duties. However, the business is aware of the value of expanding its activities outside of China.

According to Elon Musk. India has among of the highest import duties in the world, and the firm wants lower rates so that it may test its products in the Indian markets alongside automobiles imported from United States & China.

However, before lowering the levies. Which may be as high as 100%, the Indian government emphasised local production and required Tesla to make a commitment to doing so.

The electric vehicle company had already assembled a group from the neighbourhood and started looking for a suitable site for a showroom. Last year, though, these plans were finally shelved.

Locally sourced materials and labour are in line with PM Narendra Modi’s “Make in India” initiative’s goal of luring foreign investors. This assumes increased significance as businesses look to diversify their supply networks and lessen their reliance on China.

The meeting takes place a few weeks before PM Modi’s planned trip to the US in June.

According to news reports. While Tesla had difficulties entering the Indian markets other international rivals like Mercedes-Benz AG have taken steps to sell locally made cars. These businesses are relying on India’s rising interest in electric automobiles.

It should be emphasised, though, that Tesla has not yet given India much thought as a viable home for producing its pricey vehicles. According to Elon Musk. The business won’t build factories in any area where it is prohibite from offering sales and servicing for its vehicles.

Tesla is one American company that has begun to realise the value of expanding its business outside of China. The current trade tensions between Beijing and Washington. Which shows no signs of diminishing, are what led to this realisation.