Tesla intends to build a car factory in India and plans to purchase $19 billion worth of components this year

Tesla plans to build a car factory in India and intends to buy $19 billion worth of components this year

【Phoneauto News】Phoneauto has noticed that Piyush Goyal, the Minister of Commerce and Industry of India, recently announced that Tesla plans to purchase components worth $1.7 billion to $1.9 billion from India this year. This move aligns perfectly with Tesla’s preparations to establish a car factory in India.

Tesla

In July of this year, there were reports that Tesla representatives would meet with Indian Minister of Commerce and Industry Goyal to discuss the construction of a car factory in India. Tesla expressed interest in establishing a factory in India to produce an electric car priced at $24,000. This price is 25% cheaper than Tesla’s current lowest-priced Model 3.

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Tesla has always attached great importance to the Indian market. As early as February 2021, Tesla registered a company in India, taking a step towards entering the Indian market. However, due to unsuccessful negotiations with the Indian government on tax incentives, Tesla’s plans to enter the Indian market have been delayed until now. Now, Tesla’s factory construction in India seems to be on track. Tesla has chosen to establish a factory in India to produce its upcoming low-cost electric car, which will be sold in the Indian market and exported to other countries.

India, as a rapidly developing market, undoubtedly has tremendous potential for Tesla. Although Tesla has performed strongly in the Chinese market, continuing to expand its business in Asia is also an important part of Tesla’s global strategy. The plan for Tesla to purchase a large number of components from India is undoubtedly an important step for its further development in the Indian market. This not only helps reduce Tesla’s production costs, but also enhances its competitiveness in the Indian market.

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