Tesla Talking ?

 

 

Tesla is talking with local auto component manufacturers to figure out :

“ How much local value addition can we make if we start manufacturing in India ? “

Context :

[ A ]

Tesla in talks with 3 local companies for parts supply   /   Eco Times  /  29 Aug 2021

 

Extract :

 

Ø  US electric vehicle maker Tesla is in talks with at least three Indian suppliers to source critical parts as part of its plans to enter the Indian market, said people aware of the matter.

Ø  The company is looking to source critical electronic, electrical and mechanical components, even as Sona Comstar, Sandhar Technologies and Bharat Forge are understood to be among the Indian firms already supplying components to it.

Ø  Preliminary discussions are on with tier 1 companies for the supply of various components such as :

#   Instrument Panels

#   Windshields

#   Differential Gears

#   Brakes

#   Power Seats

Ø  ET has also learnt that a meeting between Tesla representatives in India and the Automotive Component Manufacturers Association ( ACMA ) took place recently in which sourcing of critical parts was discussed

Ø  The company , which is rather secretive about its suppliers, makes some of the electrical components – such as ,

#     Electric Motor

#     Battery Pack, and

#     Charger,

-       while sourcing the sub-assemblies and rest of the parts from global suppliers

Ø  Meanwhile, the auto parts industry has urged the government to extend the production-linked incentive scheme to electric and electronic parts and encourage local sourcing by global companies

 [ B ]

Tesla’s proposal for lower import duty finds traction   /  TOI  /  30 Aug 2021

Extract :

Ø  Tesla’s proposal for a reduction in import duty to enter India has been backed by several government agencies, including the road transport ministry, department for promotion of industry and internal trade and NITI Aayog, with a final call now to be taken by finance ministry

Ø  Officials indicated that there is discussion around the tariff cut coming with certain conditions which may include,

#   a mandated level of infrastructure creation in the form of charging stations

     or similar requirements

#   alternatively, a DOMESTIC SOURCING clause could be added, which will

     require the Elon Musk founded entity to BUY some COMPONENTS from

     India, a model that was tried with single-brand retailing in the initial years

     

Ø  Union Transport Minister , Nitin Gadkari had urged the top company executives that Tesla MUST have its manufacturing unit in India

Ø  The proponents of LOCAL SOURCING argue that it will help develop a vendor base in the country, which will be beneficial for the electric vehicle space in the long run

Ø  In the past, the Finance Ministry has shunned proposals from companies such as Apple to enter India purely to sell its products ( 23 May 2017 ),  and has instead preferred a model where the overseas player also sets up some MANUFACTURING FACILITY

===============================================

MY  TAKE  :

 

Ø  In my following e-mail , I had shown how Tesla can achieve a “ local value addition “ , which would satisfy Indian Government :

 

             Hey Elon , What is so difficult ? …………………… 15 Aug 2021 ]

Extract :

I urge, Tesla to examine following program – and if feasible send it (with changes if required ), to GOI

This could form a basis for further discussions / finalization

If an agreement is reached, it would serve as a BENCH-MARK for all other Foreign Manufacturers wanting to make / sell, electric vehicles in India

===================================================

Tesla to commit to following PHASED MANUFACTURING PROGRAM for making Model 3 in India

Year ( Ap-Mar)	Items to be procured locally	Value Addition % ( For the Year )	Value Addition % ( Cumulative )
22 - 23	NIL ( Import of fully assembled cars )	-	-
23 - 24	KDU – Knocked Down Units ( Add Assy Hours )	5	5
24 - 25	Tyres / Chasis / Body / Electricals  / Windows / Dashboards ..etc	10	15
25 - 26	Li-ion Battery	40	55
26 - 27	Sensors - Cameras – GPS locators	15	70
27 - 28	Autonomous Navigation Devices ( Radar – Lidar  )	20	90

===================================================

Dear Manuj Khurana 

( Head of Tesla India’s Policy and Development department ),

 

I hope, with help from members of ACMA, you will succeed in “ Walking the Talk “ with GOI

When I was a student in USA ( 1955 / 58 ), Ford Motor Company had following advertising slogan :

“  There is a Ford in your future “

 

For Indians in 2021 , would Tesla not like to say :

“ There is a Tesla in your Taqdeer “ ?

 

With Regards,

Hemen Parekh  /  hcp@RecruitGuru.com / 30 Aug 2021