Tesla considers car assembly in India, positive response to government proposal
Tesla, the electric car manufacturer owned by the renowned businessman Elon Musk, is reportedly considering assembling its cars in India. According to several reports, the company may establish a manufacturing plant in India in the near future. The Indian government had proposed the idea of assembly to Tesla, which received a positive response from the company. Tesla has said that it is willing to assemble cars in India and is also working on creating vendor bases in the country.
The Indian government had suggested to Tesla that it not only assemble electric cars in India but also establish a vendor base. The Modi government believes that once Tesla starts assembling cars in India, it can sell them in the country and later contemplate manufacturing them. Tesla has responded positively to the proposal from the Indian government. The company hopes that the integration of manufacturing and supply chain processes can help in setting up a manufacturing plant in India.
Currently, Tesla’s global production is mainly located in Shanghai, China. Tesla has established a strong foothold in China’s automobile market and has recently built a mega-factory for batteries in the country.
If Tesla decides to manufacture electric cars in India, vendors in China will have to shift their operations to India, which may cause some difficulties. India’s Minister of Technology, Rajeev Chandrasekhar, had previously said that Tesla is seriously considering setting up a manufacturing plant in India.
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