Tesla to source auto components worth up to $1.9 bn from India this year: Piyush Goyal

Union commerce minister Piyush Goyal on Wednesday said that Elon Musk-led Tesla is planning to source auto components worth $1.7 billion to $1.9 billion from India this year. Goyal was speaking at the sidelines of the 63^rd ACMA (Automotive Component Manufacturers Association of India) annual convention.

"Tesla got $1 billion worth of auto components last year. This year they have a target of $1.7-$1.9 billion. Yesterday, I had a conversation with some auto industry participants and they indicated that they have an interest in coming to India. I am convinced that this is the future. This is something that we are trying to attract," Goyal says.

Goyal's statement comes amidst Tesla's plan to enter the highly competitive domestic automobile industry. Over the past few months, Tesla officials have been holding talks with the government for setting up manufacturing facilities. Though the electric vehicle manufacturer has not officially announced any specific dates for its foray into the Indian automobile industry, it plans to enter as soon as possible. Moreover, the company is planning to sell electric vehicles in India worth ₹20 lakh.

In June this year, Musk said, "I think India has more promise than any large country in the world."

"Prime Minister Narendra Modi really cares about India because he is pushing us to make significant investments in India which is something that we intend to do," the Tesla CEO added.

The Tesla CEO said that he is planning to visit India next year.

Earlier this year, EV sales across the country crossed the crucial one million mark. In CY23, a total of 10,00,243 electric vehicles have been sold, according to data on the VAHAAN portal of the Ministry of Highways.

Government think tank NITI Aayog expects 30% of passenger vehicle EV penetration by 2030 with annual sales touching approximately one crore units. The Economic Survey 2022-23 states that the domestic EV market is expected to grow at a compound annual growth rate (CAGR) of 49% between 2022 and 2030.

Nitin Gadkari last month said that the country's EV market is expected to grow to 10 million units in annual sales by 2030 and create 50 million jobs. There has been a 300% rise in EV sales in 2022 and the market potential is expected to reach $266 billion by 2030, he says, adding that India has 400 EV two-wheeler start-ups.