Tesla plans to nearly double India component sourcing to $1.9 billion

New Delhi: Tesla plans to source components worth $1.7-$1.9 billion from India this year, the commerce minister said on Wednesday, amid plans by the electric vehicle maker to set up a factory in the country.

Reuters reported last month that Tesla’s senior executives met the minister with an interest in building a factory in India that would produce a low-cost electric vehicle (EV) priced at $24,000, around 25 per cent cheaper than Tesla’s current entry-level model, for both the Indian market and export.

“Tesla last year already bought $1 billion worth of components from India... this year their target is $1.7-$1.9 billion,” Commerce Minister Piyush Goyal said at an auto conference.