Senior Tesla execs likely to visit India this week to meet govt officials: Report

Senior Tesla executives plan to visit India this week to meet government officials as the US-based EV major pushes to diversify beyond China., said a report on Tuesday. 

"The executives are scheduled to meet with government representatives including those from the office of Prime Minister Narendra Modi to discuss local sourcing of components for Tesla’s models," reported Bloomberg.

This would be a climbdown for Tesla CEO Elon Musk who has criticised India’s high import taxes and its electric-vehicle policies.

The visitors might include C-suite executives and managers from Texas-based Tesla’s supply chain, production and business development teams. The executives are expected to reiterate Tesla’s request for India to cut import taxes on its vehicles, Bloomberg reported quoting sources.

Last year, Nitin Gadkari, road transport and highways minister,  said if Tesla is ready to manufacture its electric vehicles in India then there is 'no problem' but the company must not import cars from China.

According to him, India has got all the competence.

"The vendors are available. We have all types of technology, we have all the spare parts," he had said at the Raisina Dialogue, adding that it will be a win-win situation for both India and Tesla.

In 2021, the heavy industries ministry had also asked Tesla to first start manufacturing its iconic electric vehicles in India before any tax concessions can be considered.

In 2021, the US firm had stated that the effective import tariff of 110 percent on vehicles with customs value above $40,000 is "prohibitive" to zero-emission vehicles.

It had requested the government to standardize the tariff on electric cars to 40 per cent irrespective of the customs value, and withdraw the social welfare surcharge of 10 per cent on electric cars.

It had stated that these changes would boost the development of the Indian EV ecosystem and the company will make significant direct investments in sales, service, and charging infrastructure; and significantly increase procurement from India for its global operations.