Tesla, the renowned American-based electric car manufacturer, is all set to source components worth $1.7 to $1.9 billion from India. In a recent press conference, India’s Union Trade Minister Piyush Goyal confirmed this news.
The components to be supplied by India will include battery cells, lithium-ion battery packs, and other related parts for Tesla’s electric vehicles. In exchange, India will receive a share of the profits from Tesla’s sales in the country and access to advanced technological expertise.
This agreement is a win-win situation for both countries. India stands to gain access to Tesla’s advanced technology and global expertise, while Tesla will benefit from India’s strong manufacturing capabilities and low labour costs.
Tesla’s presence in India is expected to help the country in its mission to become a global hub for electric vehicles. This agreement is also likely to create more jobs in India, both directly and indirectly.
The deal also aligns with India’s plan to reduce its dependence on imports for auto components. It is estimated that India currently imports $15 billion worth of auto components each year, a figure that the government hopes to reduce significantly with the help of Tesla’s partnership.
The agreement between the two countries is expected to bring a much-needed boost to India’s electric vehicle industry. It will also help India to strengthen its position in the global electric vehicle market.
This agreement marks an important milestone in India’s relationship with Tesla, and it is hoped that this will pave the way for more such collaborations.