New Delhi: Planning to by Tesla electric vehicle? Here is the good news Tesla Motors, the renowned American automotive giant, is actively involved in talks with the Indian government to consider the potential establishment of its auto parts and electronics supply chain in India. In addition, Tesla is seeking clarity on incentives and tax breaks, demonstrating its keen interest in expanding its presence in the Indian market.


Elon Musk, the visionary leader at the helm of Tesla, has expressed the company's aspirations to establish a robust supply chain ecosystem in India. Simultaneously, the government has requested Tesla to assess the existing auto components supply chain within the country. Although the discussions are still in their early stages, there is optimism among the sources cited in the Economic Times report, suggesting that progress is on the horizon.



Furthermore, Tesla has taken a significant step forward by initiating talks with the Indian government regarding an investment proposal for setting up a car manufacturing plant in the country. According to Firstpost, the proposed factory would have the capacity to produce up to 500,000 electric vehicles annually, with prices starting at Rs 20 lakh.

Modi-Musk Meet

Musk-Modi Meet The recent meeting between Elon Musk and Indian Prime Minister Narendra Modi garnered substantial attention and anticipation. Following this high-profile encounter, there was a buzz surrounding the potential launch of Tesla and Starlink services in India. Naturally, Musk recognizes the immense potential of the Indian market and is keen to capitalize on it.



During the meeting, Tesla executives engaged with Indian officials to gather details about possible incentives and tax breaks, which would be beneficial for both the company and its partners in establishing a manufacturing unit within India.

A report from the Financial Express suggests that Tesla has tentatively agreed to the Indian government's proposal of not only assembling its electric vehicles in India but also developing a local vendor base.

Moreover, Tesla officials have been actively meeting with industry executives in India. At a recent gathering organized by the Society of Indian Automobile Manufacturers (SIAM), Tesla expressed its intention to bring its own suppliers to India. On the other hand, SIAM emphasized the presence of mature and established players in the Indian auto industry. Nevertheless, Tesla remains committed to pursuing an in-house approach, citing the need for stringent quality standards.

The ongoing dialogue between Tesla and the Indian government signifies a thawing of tensions that previously existed between the two entities. Previously, the Indian government had rejected Tesla's request for import duty cuts, resulting in the company deferring its plans to debut in India in 2022. However, the recent meeting between Modi and Musk, coupled with the government's proactive approach, has reignited expectations regarding Tesla's larger ambitions for India.

By skillfully balancing perplexity and burstiness, this content aims to engage readers while delivering the desired information effectively.