financetom
Business
financetom
/
Business
/
Tesla executives to visit India this week in pivot beyond China
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Tesla executives to visit India this week in pivot beyond China
May 16, 2023 7:36 AM

A group of senior Tesla Inc. executives plan to visit India this week to meet with federal government officials in a newfound bid to deepen the carmaker’s supply chain in the country as it pushes to diversify beyond China.

Share Market Live

NSE

The executives are scheduled to meet with government representatives including those from the office of Prime Minister Narendra Modi to discuss local sourcing of components for Tesla’s models, people familiar with the matter said, declining to be named as the plans are private.

The visit could represent a thaw in the relationship of India and Tesla, which has yet to enter the country in a meaningful way. Chief Executive Officer Elon Musk has criticised India’s high import taxes and its electric-vehicle policies, and India, in turn, has advised Tesla not to sell cars in the country that have been made in China, its political adversary.

Also Read: Tesla raises US prices for all its EVs except Model 3

The visitors are set to include C-suite executives and managers from Austin, Texas-based Tesla’s supply chain, production and business development teams. The executives are expected to reiterate Tesla’s request for India to cut import taxes on its vehicles, the people said.

India Said to Want Tesla to Buy $500 Million of Local Auto Parts

Tesla didn’t immediately respond to an email sent to the press address on its website outside of US office hours. A representative for the ministry of road transport and highways didn’t respond to request for a comment.

Sourcing more from India could help Tesla win Modi’s favor as he tries to make the country a global manufacturing hub. Thus far, Modi’s administration has been lukewarm to Tesla, asking it to avoid selling vehicles assembled at its Shanghai factory. India has been engaged in a long-time border dispute with neighbor China.

While Tesla has found it difficult to break into India, its global rivals such as Mercedes-Benz AG have taken steps to sell locally assembled cars. They’re betting on rising demand for electric vehicles in what is the world’s most populous country and an automobile market with high growth potential.

To be sure, Tesla is still far from considering India as a base for assembling its pricey cars. Musk has said his company won’t set up manufacturing plants in any location where it isn’t allowed to first sell and service its vehicles.

But US companies including Tesla are increasingly realizing the importance of pivoting beyond China as trade tensions between Washington and Beijing show no signs of easing.

Tesla could take a leaf from Apple Inc.’s playbook. The iPhone maker has carved out India as alternative manufacturing base and now produces 7 percent of its global smartphone output in the South Asian nation.

Also Read: Elon Musk to approve all new hiring at Tesla - Here's what he said

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Oil eases on possible Gaza ceasefire, dollar strength
Oil eases on possible Gaza ceasefire, dollar strength
Mar 21, 2024
SINGAPORE (Reuters) -Oil prices slipped on Friday on the possibility of a nearing Gaza ceasefire that could ease geopolitical concerns in the Middle East, while a stronger dollar and faltering U.S. gasoline demand also weighed on prices. Brent crude futures fell 42 cents, or 0.5%, to $85.36 a barrel by 0203 GMT. U.S. crude futures shed 40 cents, or 0.5%,...
Ecopetrol's Reficar refinery awarded nearly 20% of McDermott common capital, company says
Ecopetrol's Reficar refinery awarded nearly 20% of McDermott common capital, company says
Mar 21, 2024
BOGOTA, March 21 (Reuters) - The Reficar oil refinery belonging to Colombia's Ecopetrol was awarded 19.9% of the common capital in infrastructure firm McDermott in preferential shares by a judge in Amsterdam, Ecopetrol said in a statement on Thursday. The refinery is located in the Colombian city of Cartagena. ...
Meta's Instagram down for thousands, Downdetector shows
Meta's Instagram down for thousands, Downdetector shows
Mar 21, 2024
March 21 (Reuters) - Meta Platforms's ( META ) Instagram was down for thousands of users on Thursday, according to outage tracking website Downdetector.com. ...
Hong Kong-listed Samsonite plans dual listing in hunt for investors
Hong Kong-listed Samsonite plans dual listing in hunt for investors
Mar 21, 2024
(Reuters) -Luggage maker Samsonite International ( SMSOF ) on Friday said it plans to pursue a dual listing in addition to its listing on the Hong Kong Stock Exchange to increase the liquidity of its shares and reach investors in more markets. Samsonite ( SMSOF ) did not provide details of the exchanges it is considering for the second listing,...
Copyright 2023-2026 - www.financetom.com All Rights Reserved