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Elon Musk indicates Tesla may have to put India plan on hold due to supply issues

LiveMint logoLiveMint 22-05-2017 Amrit Raj

New Delhi: Electric car maker Tesla Inc. on Monday indicated that it may have to put its India plans on hold as the local market does not have an ecosystem for supply of electric vehicle components.

“May be I’am misinformed, but I was told that 30% of parts must be locally sourced and the supply does not yet exist in India to support that,” Tesla chief executive Elon Musk said, in response to a query of a Twitter user, who asked if Tesla will introduce its products in India.

Musk said last month that the company is likely to introduce its products in India sometime in the summer of 2017.

It was not immediately clear if the 30% locally sourced clause was a condition put up by the Indian government for Tesla to set up shop in India. Mint on 24 March reported that India’s minister for transport offered land near ports to Tesla so that the company can set up a manufacturing unit in the country and also make it an export base. Tesla, however, has remained unmoved about this proposal.

Tesla’s much-anticipated Model 3, which is positioned as a mass-market, affordable car, will sell at $35,000 in the US. Some Indians have also booked it by paying an advance of $1,000.

India has ambitious plans for a mass shift to electric transport by 2030 so that all vehicles on Indian roads by then—both personal and commercial—are powered by electricity.

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