Tesla to purchase $1.7 Bn-$1.9 Bn worth of EV components from India: Piyush Goyal

After purchasing $1 billion worth of components last year, electric vehicle (EV) manufacturer Tesla aims to purchase components worth $1.7 billion to $1.9 billion this year from local vendors.

"Last year, Tesla already spent $1 billion on purchasing components from every one of you settled here. I have the list of suppliers for Tesla." Speaking at the 63rd annual meeting of the Automobile Component Manufacturers Association of India, Union Commerce Minister Piyush Goyal stated that this year's aim for the organisation was close to $ 1.7 billion or $ 1.9 billion.

The remarks come as Tesla has been developing plans to set up a manufacturing site for

EVs in India

The government intends to develop a new strategy to entice EV global companies and stimulate investment in the automotive industry, which was another key takeaway from his address. Goyal added that before formulating the policy, the Centre would consult with the appropriate parties. (

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Goyal stated, "We will start benefiting from the economies of scale of new technologies when we attain large-scale production.

This information was made public about a month after it was reported that Indian officials were drafting an EV policy that may provide import tax refunds to EV manufacturers that move some of their manufacturing to India.

Goyal responded to the claim made by international automakers that they bring investments to India by adding that these investments come to the nation due to the size of its market. He continued by saying that attracting investments does not obligate businesses to keep importing high-quality, competitively priced items that are already accessible domestically. Goyal also drew attention to the practice used by certain businesses, which is to route their investments via one country and import parts and inputs from other nations that are "not very" favourable to India.

He said that because of the free trade agreement, the nation may reconsider components imported at no charge. 

Overall, Tesla's attempt to nearly triple the amount of components it would import from India this year is indicative of its ongoing India efforts. The carmaker reportedly leased a 5,850-square-foot office facility in Pune last month, according to reports.

The union government and Tesla are now in negotiations, and Tesla is hoping to take advantage of the lucrative production-linked incentives (PLIs) to diversify its manufacturing away from China and create a facility there.