New Delhi - Tesla Inc. is anticipating the acquisition of components valued at USD 1.7 to 1.9 billion from India, and as per India's trade minister Piyush Goyal, they have already procured parts worth USD 1 billion. This announcement was made during Piyush Goyal's address at the 63rd Annual Session of the Automobile Component Manufacturers Association of India. He mentioned that Tesla had procured USD 1 billion worth of components from various suppliers present at the convention last year, and he possesses a record of the companies that have been supplying Tesla. For the current year, Tesla's objective is to acquire components in the range of approximately USD 1.7 billion to USD 1.9 billion.

According to Reuters, senior executives from Tesla met with the minister in the previous month and expressed interest in establishing a factory in India to manufacture a low-cost electric vehicle (EV) priced at USD 24,000. This vehicle would be approximately 25 percent more affordable than Tesla's current entry-level model, and it would be intended for both the Indian market and export.

Minister Goyal also highlighted the possibility of the government taking retaliatory measures against nations that do not grant access to Indian steel producers while still being permitted to sell metal to India. He specifically referred to those businesses that import car steel from their home countries.

Notably, the automotive sector in India relies on imports for 20 percent of its requirements, and this dependence varies among companies, implying that some companies deliberately opt for imports.

Furthermore, Minister Goyal questioned the assertions of several foreign automakers that claim to bring investments into India.

He stated, "Investments come to India because of its market size," emphasizing that attracting investments into India should not mean continuing to import goods that are readily available locally at competitive prices and of high quality.

The minister also suggested a closer examination of products imported from other countries under zero tax provisions of free trade agreements to ensure fair competition between Indian suppliers and the nations from which these products originate.

Minister Goyal emphasized his support for imports in general and expressed confidence in the domestic ecosystem. He revealed that his ministry is working on quality control standards for various products and proposed expanding research and development (R&D) and design capabilities.

Additionally, he stressed the importance of skilling, upskilling, and retraining the Indian workforce, urging companies to actively engage in this aspect.