• Wed. Dec 6th, 2023

Tesla supplier Panasonic in talks with government to set up battery manufacturing unit in India: Report

Tesla supplier Panasonic in talks with government to set up battery manufacturing unit in India: Report

In a bid to establish a strong supply chain before entering the Indian market, US electric vehicle maker Tesla has reportedly asked battery suppliers to enter into talks with the government to set up battery manufacturing units in the country.

This strategic move is aimed at consolidating the company’s operations in India and ensuring smooth access to the market.

Panasonic Energy, one of Tesla’s main battery suppliers, has reportedly taken the initiative to approach the Indian government to set up a battery manufacturing unit.

A delegation from Panasonic Energy, led by the company’s president and CEO Kazuo Tadanobu, recently met with officials from the Ministry of Heavy Industry to explore the possibilities of building a battery supply chain in India.

Tesla’s potential entry into the Indian market has prompted electronics supply-chain players to explore opportunities.

A top official said these players are now studying the incentives Tesla and its partners could get if they decide to set up a manufacturing unit in India. Quoted As the way says Business Standard.

Tesla’s plan to invest in India comes shortly after the meeting between Elon Musk and Prime Minister Narendra Modi during Prime Minister Narendra Modi’s US visit.

“I am confident that Tesla will be in India and will do so as soon as possible,” Musk said after meeting PM Modi.

Government officials, including officials from the Prime Minister’s Office and the Ministry of Commerce and Industry, are reportedly leading talks with Tesla.

According to the report, the government is optimistic about the possibility of Tesla setting up local manufacturing and distribution networks in India, which will greatly support the “Make in India” initiative.

Panasonic has expressed interest in participating in the bidding for the 20 GWh slot that was left vacant after Hyundai Global Motors pulled out of the Rs 18,100-crore production-linked incentive scheme for advanced chemistry cell battery procurement.

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