homeauto NewsTesla examines local sourcing partnerships in India

Tesla examines local sourcing partnerships in India

Tesla already has sourcing partnerships with at least three automobile component manufacturers in India, which are date back to 2017. Those are global partnerships. It, reportedly, is in talks with the Indian original equipment manufacturers (OEMs) for local sourcing partnerships.

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By Parikshit Luthra  Aug 30, 2021 4:50:54 PM IST (Updated)

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Tesla, reportedly, is in talks with the Indian original equipment manufacturers (OEMs) for local sourcing partnerships.

CNBC-TV18 reported on August 24 that Tesla was in talks with at least five to six OEMs in India for sourcing of components. These are very initial talks, and Tesla has not taken a call on forming any kind of sourcing partnership.
It already has sourcing partnerships with at least three automobile component manufacturers in India, which are date back to 2017. That hasn't changed. Those are global partnerships.
But this was in the context of manufacturing in India and it is understood that Tesla is nowhere close to a final decision on manufacturing. It would only be possible if its electric cars are successful in India and manufacturing in India could be at least four to five years away.
For the moment, Tesla launch could be delayed. Elon Musk had said that they would enter the market in 2021. It is almost September, and that launch is unlikely to happen right now because the company is still awaiting clarity on import duties.
It has requested for import duty reduction from 100 percent to 40 percent and until that clarity comes Elon Musk's way, he is unlikely to bring a car into the Indian market.
So it is understood that Tesla's first car launch in India could still be at least six to twelve months away. For the moment, it is still having conversations with the Indian government, making a case for duty reduction, trying to speak to different OEMs for local partnerships as well.
However, when it comes to charging, it has been told that Tesla will go alone as it has gone alone in different parts of the world.
CNBC-TV18’s Parikshit Luthra has more details.

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