Buzz over Tesla's India entry leaves investors excited. Which auto stocks could be in focus?
Tesla's India entry being a question of when, not if, Dalal Street investors have found another reason to turn bullish on auto stocks, and ancillaries in particular.
Tesla, which was looking to source $1.7-1.9 billion worth of auto parts from India this year, is said to be exploring the possibility of bringing its auto parts and electronics chain to India. Wherever Tesla sets up a base, it does so with its entire supplier base.
“Tesla already last year bought $1 billion of components I think… this year the target is $1.7 or $1.9 billion," commerce and industry minister Piyush Goyal had said last week.
Earlier in June this year, Tesla CEO Elon Musk said the company could soon be setting up a manufacturing base in India.
«I am confident that Tesla will be in India, and will do so as soon as humanly possible,» Musk was quoted saying after meeting with Prime Minister Narendra Modi in New York.
As and when Tesla starts a manufacturing base or supply chain in India, it would usher in promising growth for Indian auto component manufacturers.
“To start with, it will create a goldmine of opportunities for domestic manufacturers. These companies would not only benefit from the transfer of advanced technologies but would also enhance their products and services through innovation and R&D.
