Piyush Goyal Pays a visit to the Tesla Facility

By Consultants Review Team Tuesday, 14 November 2023

Union Commerce Minister Piyush Goyal stated on Tuesday that he visited Tesla's cutting-edge manufacturing facility in Fremont, California, at a time when the center is mulling a request from Elon Musk's Tesla to drop tariffs on imported electric vehicles (EVs). Goyal said that he was "extremely delighted to see talented Indian engineers and finance professionals working at senior positions and contributing to Tesla's remarkable journey to transform mobility." 

"I'm also pleased to see the growing importance of Indian auto component suppliers in the Tesla (NASDAQ:TSLA) EV supply chain." It is on track to more than triple its component imports from India. Elon Musk's charismatic presence will be missed, and I wish him a swift recovery," the Union Minister concluded.

The Tesla owner, on the other hand, apologized to Goyal for not being able to meet him since he was ill.

"It was a pleasure to welcome you to Tesla!" "Please accept my apologies for not being able to travel to California today; however, I look forward to meeting with you at a later date," Musk responded.

Goyal and Musk were set to meet during the Minister's trip to the United States, months after Musk met Prime Minister Narendra Modi in the United States and expressed his desire to make big investments in India.

According to a recent Financial Times report quoting sources, the manufacturer has requested an initial tariff reduction from the Indian government that would offset India's exorbitant customs tariffs of 70% for automobiles under $40,000 and 100% for cars over $40,000.

"Their position has always been that they require some tariff concessions, at least in the interim." It would include some form of expiry clause," one of the officials was cited in the report as saying.

Tesla requested the concession as a requirement for building a facility in the country. All EV producers would benefit from the lower tariffs. According to the newspaper, authorities claimed that the lower rate under discussion would be 15% for EVs of all prices, but that the policy had not yet been decided upon within the administration.

According to rumors, Tesla is intending to develop a battery storage factory in India and has applied to the authorities. During recent meetings, the electric vehicle manufacturer recommended using its 'Powerwall' to support the country's battery storage capacities. Musk also intends to establish a Tesla supply system in India.


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