On Wednesday, Commerce Minister Piyush Goyal revealed that the Tesla Inc has planned to source automobile parts worth up to $1.9 billion this year from India. Basically, this move of the electric vehicle giant is set to boost the country’s automobile industry and reflects the growing interest of the global industries in India as a manufacturing hub.
At the recent annual convention of the Automotive Component Association (ACMA), Tesla CEO Elon Musk’s right-hand man, Jay Vijayan, announced that Tesla is planning to double its import from India this year. However, this is done due to a significant increase of $1 billion worth of automobile parts the company imported from India the previous year. Furthermore, Vijayan also revealed that Tesla has already procured $1 billion worth of components from India in the previous year alone and aims to reach a target of $1.7-$1.9 billion for this year. Thus, this news comes as an amazing opportunity for the Indian automobile industry because Tesla’s presence in the Indian automobile market is expected to boost demand and create job opportunities in the sector.
In addition, the Honourable Minister Piyush Goyal brings his powerful conviction that electric vehicles will represent the future of transportation. As a result, these concerted efforts must be made to promote their widespread adoption. Also, it comes in the wake of recent news because hardly two months ago, this innovative and developed company, which is headed by Elon Musk, was in talks with the Indian government. This step is regarding the potential introduction of their high-tech automotive and electronic components to the Indian market.