After tech giants, is it now Tesla’s turn to focus on supply chain operations based in India?

The trade tensions between the United States and China have only grown deeper as the years have passed. In light of the same, we’ve seen the birth of concepts like China Plus One and Minus China, that are now increasingly popular among Western manufacturing and supply chain industries. In line with this, a group of high-level executives from Tesla is planning a visit to India, to explore opportunities for enhancing the company’s supply chain in the country.

The purpose of the visit is to engage with government officials and discuss the potential reduction of import duties on Tesla cars, as well as the possibility of local sourcing of components for Tesla’s car models. Among those who Tesla’s executives will meet, the PMO is also included.

India being one of the world’s largest automobile markets, Tesla’s visit could be a significant turning point in their equation with India, as the company aims to establish a presence in the country. It can also be perceived that the discussions might be fruitful towards India’s push for electric vehicle adoption and the ‘Make in India’ initiative, which encourages domestic manufacturing.

This visit comes after Elon Musk had previously halted Tesla’s plans to enter the Indian market due to disagreements over tariffs. As India strives to become a global manufacturing hub, Tesla’s increased sourcing from the country could garner the support of the Indian government. Observers eagerly await further developments in this budding relationship.

In contrast, Mercedes-Benz AG, a rival of Tesla, has been making efforts to sell locally-manufactured vehicles in India, recognizing the rising demand for electric vehicles in the country. On a separate front, Apple has been bullish on rendering India as a secondary manufacturing hub, generating a significant portion of the world’s smartphone output in the country.


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