Tesla agrees to create vendor base in India on Centre’s request

New Delhi, June 10 (KNN) Tesla has accepted Indian government’s request 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. 

China holds the major chunk of the EV maker's production. 

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 per cent 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.   (KNN Bureau)