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
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
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