Tesla to establish vendor base in India after Centre's request

09 Jun 2023 CW Team

Tesla, led by Elon Musk, had agreed to establish a vendor base in India and commence the assembly of its electric vehicles within the country. Previously, the Indian government had requested Tesla to establish a domestic assembly plant and subsequently set up a vendor base. Currently, a majority of the EV maker's production occurs in China.

Tesla prefers to maintain the integration between the manufacturing process and the supply chain, indicating that it may not delay the selection of vendors in India.

In order to initiate production, Tesla will need to relocate its vendors to India. These vendors will be required to form joint ventures with Indian companies, as India has implemented restrictions on 100% Chinese investments following the Galwan clashes in 2020.

Last month, the Indian government requested Tesla to submit a roadmap detailing its plans for India and the time required to establish local supply chains for domestic manufacturing of its electric vehicles. After reviewing Tesla's blueprint, the government will determine the concessions that can be provided to the company. Tesla is expected to present its detailed proposal for India within the next three to six months.

During the visit of the Tesla team to India in mid-May, the government informed them that if Tesla establishes a domestic assembly unit for its electric vehicles, it may receive import concessions on the imported components. A similar production-linked incentive (PLI) scheme is already in place for smartphones.

Furthermore, Tesla has withdrawn its previous demand to reduce import duties on completely built units initially. Currently, the duty stands at 100% for cars priced at $40,000 and above, while cars below this threshold carry a duty of 60%. Tesla's previous request was to reduce the duty to 40%.

Also read:
Government of Andhra Pradesh invites tenders for works
Ajmer DISCOM Invites Bids for Solar Projects in Rajasthan

Infrastructure Transport

17 Oct 2025

Sonowal Unveils Eight Projects at NMPA’s Golden Jubilee

Union Minister for Ports, Shipping and Waterways, Shri Sarbananda Sonowal, inaugurated the Curtain Raiser Ceremony of the Golden Jubilee Celebrations of the New Mangalore Port Authority (NMPA) at Bharat Mandapam. To commemorate the milestone, he unveiled eight major maritime infrastructure projects designed to strengthen India’s port network, enhance logistics performance, and promote sustainability. These include a modern cruise terminal, new covered storage facilities, a 150-bed multi-speciality hospital, expanded truck terminals, and improved port access infrastructure aimed at enhancing..

India To Boost US LPG Imports, Cut Middle East Reliance

India is planning to reduce imports of liquefied petroleum gas (LPG) from the Middle East as state-owned refiners prepare to ramp up purchases from the United States, according to sources familiar with the matter. The move aligns with New Delhi’s efforts to expand energy cooperation and secure a broader trade deal with Washington. State refiners have already notified their traditional LPG suppliers in Saudi Arabia, the United Arab Emirates, Kuwait and Qatar of the potential reduction in imports. Although the exact size of the supply cut was not disclosed, earlier reports suggested that Indi..

UK Sanctions Nayara Energy in Crackdown on Russian Oil

The United Kingdom has announced fresh sanctions on 90 entities, including Indian refiner Nayara Energy Limited, in its latest bid to curb Russian oil revenues and weaken President Vladimir Putin’s war funding. The sanctions, unveiled jointly by the Foreign, Commonwealth and Development Office (FCDO) and the UK Treasury, aim to disrupt networks supporting Moscow’s crude exports amid the ongoing war in Ukraine. According to the FCDO, the new restrictions are intended to “strike at the heart of Putin’s war funding” by targeting firms and assets that enable Russia’s energy trade. “..