The American auto manufacturer Tesla has started buying many components from India even before it makes its excursions into the nation with its electric cars. It anticipates shipping parts worth $1.7 to 1.9 billion this year.
The corporation is already buying heavily from India, showing the strength of the manufacturing processes and the calibre of the output, according to commerce and industry minister Piyush Goyal, even as it finalises its launch plans for the market.
“Tesla last year bought $1 billion worth of components from India... this year their target is $1.7 to 1.9 billion,” the minister said, adding that, “I am convinced that this (EVs) is the future. It is something we must try to attract.”
On whether Tesla will be given preferential treatment in terms of lower import duty on cars for the initial period of its business, he said, “This government has been in power for nine years, and everything we have done has been done without any partiality and without any preferences.”
Sources said that in July that Tesla opened discussions with the government for an investment proposal to set up a mega car factory in India with an annual capacity of as much as 500,000 vehicles, which would churn out electric cars with prices that may begin from “as low as” Rs 20,00,000.