Tesla ‘serious’ on establishing India production, innovation base, minister says
NEW DELHI, 19 MAY (Reuters) – Tesla Inc (TSLA.O) is “serious” about establishing a manufacturing base in India, India’s deputy minister for technology told Reuters on Friday, a day after meeting senior executives from the electric vehicle maker.
The Elon Musk-led US automaker met with Indian officials this week on a variety of topics, including incentives for car and battery manufacturing, according to Reuters on Thursday, as Tesla considers re-entering the Indian market.
“They are very seriously looking at India as a production and innovation base,” Rajeev Chandrasekhar said, making the first public comment on the talks an Indian government official.
“We have signaled to them that the government of India is working together (and) will certainly make whatever ambitions they have or investment objective they have in India a success,” said Chandrasekhar, who is one of the highest-ranking officials in Prime Minister Narendra Modi’s administration.
According to Reuters, Tesla has proposed establishing a factory in India to manufacture electric vehicles (EVs), as well as EV batteries.
When asked if talks with Tesla included more than just vehicle production, Chandrasekhar stated that “you don’t talk about cars alone” during such discussions.
“You talk about cars, you talk about energy, you talk about manufacturing technology. So all of that figures in the conversation. What they will want to do in India, it’s too far for me (to tell) and it’s not for me to say,” he added.
Tesla did not respond immediately to a request for comment.
The discussions in India represent a shift in Tesla’s stance, which stated late last year that it was focused on lowering import taxes.
Tesla did not respond immediately to a request for comment.
The discussions in India represent a shift in Tesla’s stance, which stated late last year that it was focused on lowering import taxes on cars, which can be as high as 100%.
The talks broke down because the government wants Tesla to manufacture cars in the country, while the carmaker wants to export to India first to test demand.
Outside of the United States, Tesla has a factory in Shanghai, China, and another in Brandenburg, Germany.
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Content Credit: ET Auto