Tesla's India EV component sourcing is expected to reach two folds this 2023. This means that the giant automaker could spend almost $2 billion on Indian car parts, as confirmed by the country's commerce minister.
Tesla's India EV Component Sourcing Could Reach Almost $2 Billion
Tech Crunch reported that Tesla is planning to increase its EV component sourcing from India up to $1.9 billion.
India's Minister of Commerce Piyush Goyal announced this effort during an auto event, which happened on Wednesday, Sept. 13, in New Delhi.
In 2022, Tesla spent around $1 billion just to buy automobile components from the South Asian country. Now, the EV maker targets to spend around $1.7 to $1.9 billion before 2023 ends.
"We'll start enjoying the fruits of new technologies, innovation, and R&D coming into India," said Goyal.
"The auto component industry will not only then produce for a larger India demand, but with the same models being sold in the rest of the world, we will also start exporting those components," he added.
Will Tesla Start Constructing Its Indian Plants?
In July, Reuters reported that some Tesla representatives met with Goyal. Their meeting discussed the planned Indian factory, which will be built for an all-new $24,000 EV model.
Tesla's officials explained that the EV maker wants to construct a new factory in India that would manufacture low-cost electric cars for the local market.
If successful, the automaker will even export affordable Indian-made EV models to different markets.
It seems that Tesla is now close to starting its planned Indian manufacturing plants since it wants to invest more in buying automobile components from the Asian country.
Unfortunately, the EV maker hasn't shared any update yet regarding its Indian EV plants.
Boosting Tesla-India Relationship
Tesla CEO Elon Musk previously met with Indian Prime Minister Narendra Modi. The billionaire confirmed that he's looking to invest in the country, as well as establish its local presence in the Indian market.
But, Musk didn't provide any investment plan, timeline, or other details. Although this is the case, there have been discussions that the EV maker will bring its business to the South Asian nation.
However, the tech executive clarified that they will only start manufacturing EVs locally in India if the country allows them to service and sell imported ones there.
