- By Vaamanaa Sethi
- Tue, 25 Jul 2023 10:09 AM (IST)
- Source:JND
Senior executives of US electric car maker Tesla are likely to meet Union Commerce and Industry minister Piyush Goyal to discuss the plans to set up its car and battery manufacturing unit in India.
According to sources, as quoted by the Economic Times, the development follows a virtual meeting between Goyal and Tesla chief executive Elon Musk earlier this month.
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The Ministry of Commerce and Industry and Ministry of Electronics and Information Technology have been discussing Tesla’s plans since PM Modi met Musk during his state visit to the US.
"Multiple ministries are involved in these talks. Top company executives are expected to visit soon.Musk had a meeting with Goyal virtually about two weeks ago. It was centred around how Tesla can set up a manufacturing presence in India," sources were quoted as saying by ET.
Tesla, which is said to be the largest electric vehicle maker in the world, currently has its factories in China, Germany, the US, Canada, Mexico and the Netherlands.
"The government has said they (Tesla) can convey whatever support they need, and it will be organised. The next steps are being decided. Tesla is very keen on India, which is why they have even had this meeting," sources said further.
The electric car maker had earlier discussions with the Indian government regarding possible incentives and tax breaks.
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The company has also expressed its interest in bringing its own supply chain ecosystem to India, even though the government has asked the company to first evaluate the existing domestic auto components supply chain.
Tesla has been wanting to sell its cars in India for a long time, however, the government did not accept its demand for lower duties and instead suggested it manufacture its car in the fast-paced Indian market.
As per the ET report, Tesla wanted 40% import duty on fully assembled electric cars, against the current rate of 60% applicable on those priced below $40,000 and 100% on those above that threshold.
