Elon Musk’s Tesla Plans To Source Components Worth Up to $1.9 Billion From India, Says Piyush Goyal

Electric vehicle maker Tesla is planning to source components worth between $1.7 billion to $1.9 billion from India and has already sourced parts worth $1 billion, said Piyush Goyal, India’s trade minister, at Automotive Component Manufacturers Association (ACMA).

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The quantum of imports is expected to be approximately twice as much as the $1 billion worth of auto parts that Tesla imported from India last year, Goyal said. "Tesla last year already bought $1 billion worth of components from India... this year their target is $1.7-$1.9 billion," he added.

Piyush Goyal’s statement on Tesla planning to increase the quantum of imports came around two months after reports revealed that Elon Musk-led EV maker has held talks with the Indian government, and is exploring the possibility of bringing its auto parts and electronics chain to India.

The electric vehicle maker has shown interest in bringing its own supply chain ecosystem in India even as the government has asked the company to assess the existing auto components supply chain in the country, according to The Economic Times report.

"I am convinced that this (EVs) is the future. It is something we must try to attract," news agency Reuters further quoted him as saying.

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In the last month meeting with Elon Musk, PM Modi had urged the company to make a ‘significant investment’ in the country. “India has strong potential for a sustainable energy future including solar power, stationary battery packs and electric vehicles,” Elon Musk said after meeting with PM Modi last month.

Musk further said that he hopes to bring SpaceX's Starlink satellite internet service to the country as well.