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India to push for EV investments with new policy says minister Goyal

September 13, 2023 2:28 PM

Indian commerce minister, Piyush Goyal revealed Wednesday that the country is in the process of drafting a new policy aimed at enticing electric vehicle (EV) manufacturers and fostering increased investment in the industry.

This announcement coincides with ongoing discussions between the U.S.-based EV company Tesla (NASDAQ: TSLA) and the Indian government led by Narendra Modi regarding the potential establishment of a manufacturing facility in India.

"We will come out with a policy," he stated, emphasizing the government's desire to swiftly draw in more investments and bolster domestic manufacturing.

"As we get large-scale production, we will start enjoying the fruits of economies of scale of new technologies," Goyal added. The minister did not provide specific details about potential incentives at this time.

Tesla plans to build an affordable electric vehicle priced at $24,000, which represents approximately a 25% reduction in cost compared to its current entry-level model. This lower-cost EV will be targeted at both the Indian market and for export.

In terms of components, Piyush Goyal disclosed on Tuesday that Tesla has set its sights on procuring components valued at approximately $1.7 billion to $1.9 billion from India this year, a substantial increase from the $1 billion worth of components it purchased in the previous year.

By Michael Elkins | [email protected]

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