According to a report from The Economic Times, Tesla, the US-based electric vehicle (EV) manufacturer, has reportedly struck a strategic deal with Tata Electronics to procure semiconductor chips for its global operations. The deal indicates Tesla’s interest in establishing a supply chain in India beyond just local revenue generation.
This development coincides with reports of Tesla’s CEO, Elon Musk, planning a visit to India, where he is slated to meet with PM Narendra Modi and potentially announce investments in the country.
“Looking forward to meeting with Prime Minister Narendra Modi in India!,” Musk had said on April 10 in a post on X.
In March, the Indian government unveiled a new EV policy aimed at reducing import taxes from 100 per cent to 15 per cent on certain models, provided the manufacturer invests at least $500 million and establishes a factory in India.
Tesla’s foray into India comes at a time when the company is facing slowing demand in its primary markets, namely the US and China, as evidenced by a drop in first-quarter deliveries that fell short of analyst expectations.
In their pursuit of establishing a presence in India, Tesla has received attractive land offers from the state governments of Gujarat and Maharashtra for the construction of an EV manufacturing facility.
Reports from Reuters suggest that Tesla officials are expected to visit India later in April to assess potential sites for a manufacturing plant, which would necessitate an investment of approximately $2 billion.
Also Read: Indian Govt May Soon Approve Elon Musk’s Starlink Satellite Communication Firm