Indian officials advised Tesla to follow Apple’s example of seeking local partners if it plans to collaborate with Chinese suppliers on contact usits plan for a new plant in India, Reuters has reported, citing government sources with direct knowledge of the matter. Tesla has been in discussions with India regarding the establishment of a new factory in the country to produce a $24,000 car for both domestic and international markets. Due to a lack of local suppliers in India for key components such as battery cells, the company is reportedly considering using Chinese suppliers. During discussions with Indian officials, Tesla expressed its desire to have some of its Chinese vendors establish local bases to strengthen its supply chain. In response, Indian officials proposed a workaround, suggesting that Tesla adopt a similar approach to Apple, which in recent months has obtained approval to bring Chinese suppliers to India after they formed joint ventures with local partners. “Tesla has been demanding a separate ecosystem for their [Chinese] vendor base … those approvals can be granted on a case-to-case basis if there is an Indian joint venture partner,” an Indian official told Reuters. [Reuters]
