In September 2023, Indian Commerce and Industry Minister Piyush Goyal said that Tesla is looking to source components worth around $1.9 billion from India in 2023
Electric vehicle maker Tesla Inc plans to source components worth $1.7-$1.9 billion from India and has already sourced parts worth $1 billion, India’s trade minister Piyush Goyal said at an auto conference .
The minister also said that the government may have to take retaliatory action against countries that do not allow access to Indian steel companies but are permitted to send the metal to India.
Goyal was referring to some companies importing automotive steel from their parent country.
The auto industry is still dependent for 20 per cent of its requirement on imports and this dependence varies across companies which shows that some of them are importing by choice.
Further, the minister dismissed the contention of some of the global auto firms which say that they bring investments into India.
“Investments come to India because of its market size,” he said adding bringing investments into India does not mean that “we would have to continue to import goods into India that are available locally at a competitive price and of very high quality.
He also slammed the practice of some companies who route their investments from one geography and import components and inputs from third countries that are “not very” friendly to India.
He said India may also have to look at products coming from other countries at zero duty under the free trade agreement more carefully to see whether there is a level playing field between Indian suppliers and the countries from which their products are coming.
