Tesla Looking For Global Component Suppliers To Make In India

Some reports on the Internet say that electric car manufacturer, Tesla Motors, is in talks with global component supplier companies to help it set up a facility in India. Tesla Motors was reportedly in discussion with German company Dralxmaier and Italian company Magneti Marelli. Both the companies have a customer base of big automotive clients such as Volkswagen, Audi, Porsche, BMW, Mercedes-Benz, and Bugatti and so on. According to sources, the discussions between the companies have begun and are already taking shape. There is no exact timeline available as yet but we believe that this could prove to be good news after the news came in that Tesla will be delaying its entry in the Indian automotive market. Elon Musk, CEO, Tesla Motors, had said that the company will be entering India in late 2017.

@elonmusk Are there any chances for Tesla to release in India in 2017 or 2018? Waiting for that.

— Avinash Singh (@TheAvinashSingh) May 22, 2017

@TheAvinashSingh Maybe I'm misinformed, but I was told that 30% of parts must be locally sourced and the supply doesn't yet exist in India to support that.

— Elon Musk (@elonmusk) May 22, 2017

He had also raised concerns about the regulations of sourcing at least 30 per cent parts locally, with regards to foreign companies setting up facilities in India. Earlier in the week, Musk responded to an Indian Twitter user, saying that maybe he was misinformed, but he was told that 30% of parts must be locally sourced and the supply doesn't yet exist in India to support that.

.@elonmusk With respect to news reports on launch plans of Tesla in India being delayed, please note some key clarifications#MakeInIndia pic.twitter.com/9RFICGM9Kk

— Make in India (@makeinindia) May 23, 2017

But, the government's 'Make In India' twitter handle responded by saying that there is no such regulation and under the current Foreign Direct Investment (FDI) rules, such restrictions apply to only retail trading of goods. Talk about a quick response.

(Tesla Motors)

India is poised to become the third largest automotive market in the world (with respect to volumes) by overtaking Japan by 2020. The country also would like to be an all-electric car state by 2030, which is an ambitious target. Therefore, the sooner we adopt electric vehicles, the easier the transition will be. And the EV auto industry in the country will get a significant boost when Tesla arrives in India.

Source: Factordaily.com