American EV giant Tesla and Indian government officials’ highly anticipated meeting has finally occurred, bringing interesting reports to the automotive space.
The discussions apparently revolved around India’s incentives for car and battery production, Reuters reports citing a person “with direct knowledge of the talks.”
As EV-a2z previously reported, the Musk-led automaker is reconsidering its plans to penetrate the Indian market. However, it is a huge leap from the initial 2019 plan of importing cars into the country, which did not materialize due to India’s high import tariffs.
Now, the automaker appears to be planning to set up its next Gigafactory in the country.
Potential hurdles
As mentioned, the discussion between the electric automaker and officials focused on government incentives for car companies and consumers in India. Considering the topic’s complexity, a Tesla insider claims that the automaker is still “testing the waters and trying to understand the local policies,” Reuters reports.
Apparently, top supply chain executive Karn Budhiraj led the Tesla delegation. Meanwhile, the Indian government’s primary point of contact was the Electronics and Information Technology Ministry. The report further emphasized that the automaker has direct contact with Rajeev Chandrasekhar, India’s Deputy State Minister of Skill Development, Entrepreneurship, Electronics, and Information Technology.
For context, India has allocated approximately $6 billion for two programs, offering auto and battery makers certain rebate incentives for selling and exporting domestically produced EVs and parts. The question is if it would be enough for Tesla to officially choose the Indian market over its other options.
“It appears Tesla has come with a different heart and head this time to take advantage of the auto boom (in India) … Tesla can negotiate on things like taxes better if it first sets up a plant.”
Mohan Shukla of New Delhi-based public policy advisory White Dolphin Media.
Unfortunately, neither of the parties addressed the discussions publicly. The automaker has also not disclosed any further details of a potential “Giga India.”
See Also:
- Elon Musk met with President Yoon Suk Yeol to discuss the possibility of a Tesla Gigafactory in South Korea
- Tesla to finalize planning for a plant in Indonesia
- Tesla CEO Elon Musk met with the French President as it seeks global expansion
- Tesla puts India entry plans on hold
- Tesla officially confirmed plans to erect its next Gigafactory in Mexico
Tesla aims to sell 20 million electric cars by 2030, which increases the necessity for a new production plant. That said, Tesla has also met with the government of France, Indonesia, and South Korea.
