Tesla needs to copy Apple in pairing Chinese, Indian suppliers, say officials: Report
Indian officials have advised Tesla—building a plant in India—to follow Apple in finding “local firms to partner with any Chinese suppliers involved" Reuters reported Tuesday citing government sources having direct knowledge of the matter. The company is in talks with New Delhi about setting up a factory in India but strained India-China ties—after 2020 border clashes—complicate Tesla's plans for bringing in Chinese suppliers crucial for components as India does not have local suppliers for the same.
Even Tata Motors imports battery cells from China. The Reuters reported that Indian officials with direct knowledge of the matter said Tesla officials have informed the New Delhi that the Austin based EV company would like to have some of its Chinese vendors to set up base in India to boost the supply chain.
The Indian officials suggested Tesla to emulate the approach of another American MNC Apple in obtaining approvals to bring Chinese suppliers to India through local joint-venture partners as granting approvals for wholly-owned Chinese firms would be difficult due to intense scrutiny of Chinese firms since 2020 border skirmishes between the two countries in Galwan Valley. The Reuters also reported that Indian government has approved some Chinese suppliers' JV partnerships with Indian companies on a case-to-case basis in recent months.
The report further said New Delhi is hesitant about allowing Chinese companies, especially automakers, to expand their base in India. In June, a Chinese automaker BYD informed its Indian partner of shelving a $1 billion investment plan to build EVs in the country after it’s proposal to investment faced intense scrutiny.
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