Musk Explores Setting Up Tesla Supply Chain In India
NEW DELHI, (IANS) – After meeting Prime Minister Narendra Modi in the US last month, Elon Musk is reportedly exploring setting up his own supply chain ecosystem in India, thus producing cheaper electric cars that might start from Rs 20 lakh.
As first reported by The Economic Times, citing government sources, the electric carmaker has engaged in talks with Indian officials to set up its auto parts and electronics chain in India, along with seeking incentives and tax benefits.
If all goes well, Tesla can reportedly produce 5 lakh electric vehicles annually that starts from Rs 20 lakh.
Currently, a standard Tesla electric car starts from more than Rs 30 lakh, and with 100 percent customs duty, the price goes up to over Rs 60 lakh.
There are, however, initial talks between the Indian government and Tesla and may take some time before a Tesla facility arrives in the country.
Tesla is also conducting meetings with industry executives in India, the report noted.
This is a change of plans for the mercurial Musk who had earlier refused to consider manufacturing in India unless India lowered tariffs for imported Tesla’s to be sold in India.