Tesla to source almost $2 billion from Indian auto part makers in 2023: Goyal

Union Minister Piyush Goyal during the 63rd Annual Session of Automobile Component Manufacturers Association of India (ACMA), at Hotel Taj Palace in New Delhi.
| Photo Credit: ANI

Tesla is likely to ramp up its sourcing from India this year to a little under $2 billion and while the government is keen to attract investors like the Texas-based electric automobile player, it will frame a policy for the sector that does not favour a single player, Commerce and Industry Minister Piyush Goyal said on Wednesday.    

“Last year, Tesla bought $1 billion of components from Indian companies like yours, I have the list of companies who supplied to Tesla. This year, that target is nearly $1.7 or $1.9 billion is what they mentioned,” Mr. Goyal told members of the Automotive Component Manufacturers Association of India (ACMA) at their annual session. The minister added that other auto players have also evinced interest in investing in India. 

Stressing that electric vehicles could soon become the preferred option for consumers, Mr. Goyal said the government would like to see more investments and larger production at the earliest, and a policy to attract investors will be framed in consultation with all stakeholders. “This is a government which provides equal opportunity to everybody… without any differentiation or preferences,” he said.