Elon Musk India visit, Tesla in India: Elon Reeve Musk, the co-founder of Tesla, is slated to visit India next week. Musk will meet Prime Minister Narendra Modi on April 22. Tesla has been planning to enter India since July 2023. There were reports that it was mulling launching electric vehicles (EVs) here at Rs 20 lakh. 

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As per Zee Business Research inputs, Tesla's goal is to make India its export base.

A host of Indian auto component manufacturers supply auto parts to Tesla. The list is as below:

Sandhar Tech: The company was selected by the auto giant in 2017 to supply two wiper systems to its Mexico plant. 

Samvardhan Motherson: Since 2018, the international arm of the company has been supplying components to Tesla. 

Varroc Engineering: It supplies a small lamp for Tesla's Model Y. 

SKF India: The company supplies deep groove ball bearings and ceramic bearings to the company.

Suprajit Engineering: It has been supplying Tesla Light Duty Cable since 2022. 

Sundram Fasteners: It supplies gear transmission and radiator caps. 

Tata Electronics: Tesla has inked a deal with the company for the supply of semiconductor chips.

Why is India crucial for Tesla?

One of the main reasons why India is the key market for Tesla is the attractive cost of production. India is a big market to increase volumes. Currently, EV penetration in India is 3 per cent; hence, there is a huge opportunity for Tesla. The government aims to increase EV penetration in India to 30 per cent by 2030.

It must be noted that at present, Tata Motors, MG Motors, and M&M account for 90 per cent EV market share.

Apart from announcing Tesla's maiden foray in India, Musk is also expected to disclose details of the automobile major's plans for the country. Tesla's interest in expanding its presence in the Indian market has intensified, with the company actively searching for a suitable location to establish a cutting-edge manufacturing facility.

According to sources, both the state governments of Maharashtra and Gujarat have reportedly extended attractive land offers to Tesla for this purpose, signalling significant progress in India's electric mobility landscape.

The proposed manufacturing plant, with estimated investments ranging from USD 2 billion to USD 3 billion, aims to cater to both domestic and international demand for Tesla's electric vehicles. 

Tesla's entry into the Indian market holds immense promise for the country's economy and environment.

The establishment of a manufacturing plant and increased procurement of auto parts from India are expected to create jobs, foster economic growth, and strengthen the domestic manufacturing ecosystem. 

With inputs from agencies