The Indian government has clarified that it has no plans to offer separate incentives to Tesla for setting up a manufacturing plant in India. According to a government official, Tesla can avail the existing Production Linked Incentive (PLI) schemes, which are applicable to all manufacturers. The government does not intend to create special policies for a single company.
Panasonic’s Interest in Making Batteries in India
The official also revealed that Panasonic, the major supplier of batteries to Tesla, has expressed its intention to manufacture batteries in India. The company was encouraged to apply for the PLI scheme for Advanced Chemistry Cell (ACC) battery storage, which has an outlay of INR 18,100 Crores.
Tesla- Renewed Focus on India
The recent development comes as Tesla, led by Elon Musk, intensifies its focus on India and explores opportunities to establish manufacturing plants in the country. Last year, Musk criticized the high import duties on electric vehicles imposed by the Indian government and called for tax reductions. However, the government declined the demand, leading Tesla to halt manufacturing plans in countries where it cannot first sell and service cars.
Prime Minister Narendra Modi’s Meeting with Tesla CEO Elon Musk
Elon Musk met with Prime Minister Narendra Modi in New York last month, expressing his intention to visit India in 2024. Musk affirmed that Tesla will be in India as soon as possible, indicating the potential for significant investment and a strong relationship with the country.
India’s Attractive Investment Destination for US Companies
As the world’s third-largest energy consumer, India is strategically positioning itself as an appealing investment destination for US companies amid growing tensions between Beijing and Washington. With the government’s stance on providing incentives through existing schemes, the company has an opportunity to explore the Indian market further and contribute to the nation’s burgeoning electric vehicle industry. Collaborations with global players like Tesla could drive technological advancements and accelerate the adoption of electric vehicles, facilitating India’s transition towards sustainable mobility.
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