Tesla's Chinese vendors may get to Make in India

India Business News: India is working towards expediting the necessary approvals for Tesla's investment proposal by January 2024. The government is making concerted effort

India Business News: Commerce and industry minister Piyush Goyal stated that India will address the issue of the European Union's plan to impose a carbon tax on certain im

The Prime Minister's Office Monday held a meeting with top officials to take stock of the next phase of electric vehicle (EV) manufacturing in the country, including Tesla's investment proposal, people with knowledge of the matter told ET.

India Business News: Tesla is seeking to break into one of the world’s most promising auto markets where the demand for electric vehicles is rising among the country’s bur

India is attracting EV players amid Beijing-Washington tensions. The government rolled out production-linked incentives for advanced chemistry cells and components. The UK seeks customs duty concessions on EV exports to India. The Economic Survey 2022-23 estimates India's EV market will create five crore jobs by 2030. Tata Motors is a leading player in passenger EVs.

India is close to an agreement with Tesla, allowing the US automaker to ship its electric cars to the country and set up a factory within two years. The announcement could come at the Vibrant Gujarat Global Summit in January. Tesla would commit an initial minimum investment of around $2 billion in any plant and look to increase purchases of auto parts from the nation to as much as $15 billion.

According to sources aware of the matter, Tesla has approached the union government with a detailed proposal linking the quantum of investment to the number of cars it can import at lower duty. The company is willing to invest up to $500 million if the government extends concessional tariff for 12,000 vehicles and can increase this up to $2 billion if the reduced duty is approved for 30,000 vehicles.

The Indian government has outlined its vision to make the country a developed nation by 2047, with a major focus on the shift towards electric vehicles (EVs). The plan includes tax incentives, production linked incentive schemes, and the mandatory provision of charging infrastructure to support the adoption of EVs. The government aims to decarbonize the freight transport sector by shifting modal share from road to rail. The vision was discussed by Secretary Rajesh Kumar Singh during a session at the World Economic Forum (WEF) in Davos.

Even as top executives of Tesla are meeting up with Indian government officials to discuss its foray into the country, the US-based electric vehicle manufacturer has picked up office space in Punes Viman Nagar locality. The companys India arm, Tesla India Motor & Energy, has leased the office spread over 5,850 sq ft in a coworking center on the first floor of one of the towers in Panchshil Business Park.

Electric vehicle makers whose subsidies under a Rs 10,000-crore scheme to promote clean mobility have been withheld over allegations of non-compliance are likely to challenge the government move in courts. If the companies are successful, the government may have to reimburse them the full amount of the subsidy.