Tesla says minister ‘serious’ to build India’s production, innovation base

NEW DELHI, May 19 (Reuters) – Tesla (TSLA.O) The country’s deputy technology minister told Reuters in an interview on Friday, a day after meeting with executives at the electric car maker, that the country is “seriously” working on plans to set up a manufacturing base in India.

US automakers led by Elon Musk met with Indian officials this week on a range of topics, including incentives to make cars and batteries. Reuters reported Thursdayas Tesla is reconsidering its entry into the Indian market.

“They are very seriously considering India as a production and innovation hub,” said Rajeev Chandrasekhar in the first public comments by Indian government officials on the negotiations.

Chandrasekhar, one of the prime minister’s top officials, said, “We have told the Indian government that we are working together and that they will succeed in their ambitions and investment goals in India.” Narendra Modi government.

According to Reuters, Tesla has proposed setting up a factory in India to manufacture electric vehicles (EVs), and is also considering manufacturing EV batteries.

Asked if the talks with Tesla included more than car manufacturing, Chandrasekhar said that when such talks take place, “we don’t just talk about cars.” rice field.

“You talk about cars, you talk about energy, you talk about manufacturing technology. It’s too much and I don’t know,'” he added.

Tesla did not immediately respond to a request for comment.

The discussions in India represent a change of stance for Tesla, which said late last year that it was focused on aiming to cut import taxes on cars (up to 100%).

Negotiations stalled after the government said Tesla was keen to build cars locally while the automakers wanted to export to India first to test demand.

Outside the US, Tesla has a factory in Shanghai, the world’s largest factory, and another in Brandenburg, Germany.

Reported by Munsif Vengatil and Aditya Karla in New Delhi. Additional reporting by Aditi Shah.Editing: Alexander Smith

Our criteria: Thomson Reuters Trust Principles.

Munsif Vengattir

thomson Reuters

Munsif Vengattil is India technology correspondent for Reuters based in New Delhi. He tracks how policy decisions are affecting Indian tech businesses and how the country is competing more aggressively to become a powerhouse in the global electronics supply chain. He also regularly reports on major technology companies such as Facebook and Google and their strategies and challenges in key Indian markets.

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