Rumour: Tesla in talks with component makers for India plant

US-based electric car maker, Tesla, is said to be in talks with its global component suppliers for setting up a manufacturing facility in India. Reports suggest that the company is working with the Dräxlmaier Group and Magneti Marelli for sourcing electric car parts in India. The company has also suggested that if some parts aren't made in India, suppliers can source it from their international arms and then supply the same to the automaker.

If these reports are true, Tesla is considering opening a manufacturing facility in the country in the distant future. The Government of India is trying to enhance share of electric cars in the country and has already given proposals to the American car maker for setting up a manufacturing base in the country.

Locally sourcing components and parts for its electric cars will allow Tesla to setup a direct sales model through company-owned retail outlets, similar to what it follows in some US and Europe markets. Local manufacturing will also enable the carmaker to avoid paying huge import duties on CBU models in India.

While Tesla's CEO - Elon Musk had previously announced that the company will make its Indian debut by the end of 2017, his recent tweet indicated that plans can be put on hold due to some government policies hindering the company's debut. However, the Indian Government's Make in India twitter account soon replied to the CEO, trying to clear his doubts regarding India's policies for foreign investment. No official response has been given by the company or the CEO ever since.

Source: Factor Daily