Tesla Inc. will source auto parts worth $1.9 billion from Indian automobile component manufacturers in FY24, the Minister of Commerce, Piyush Goyal, said.
"Tesla, already last year, bought $1 billion (worth) of components. I have a list of companies. This year, that target is $1.7–1.9 billion," Goyal said at the 63rd annual summit of the Automobile Components Manufacturers Association of India on Wednesday.
Discussions with other auto industry participants revealed that the company has indicated interest in coming to India, he said.
Media reports have suggested that the company was lobbying for tax cuts to enter the Indian market.
India levies 100% tax on imported cars with a cost, insurance, and freight value of over $40,000, while tax on cars with a CIF value below that mark is 70%.
The central government has asked the company to commit to local manufacturing before allowing tax cuts, according to media reports.
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