Tesla Supplier Panasonic In Talks With Govt For Setting Up Battery Manufacturing Unit In India: Report

In a bid to establish a strong supply chain before entering the Indian market, US electric vehicle manufacturer Tesla has reportedly asked its battery suppliers to engage in negotiations with the government to establish battery-manufacturing units in the country.

This strategic move aims to solidify the company's operations in India and ensure a smooth entry into the market.

One of Tesla's key battery suppliers, Panasonic Energy, has reportedly taken the initiative to approach the Indian government regarding the establishment of a battery-manufacturing unit.

A delegation from Panasonic Energy, led by Kazuo Tadanobu, the president and CEO of the company, recently met with officials from the Ministry of Heavy Industries 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.

Tesla's plans to invest in India comes shortly after a meeting between Elon Musk and Prime Minister Narendra Modi during the latter's visit to the United States.

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

Government officials, including those from the Prime Minister's Office and the commerce and industry ministry, are reportedly leading discussions with Tesla.

According to the report, the government is optimistic about the possibility of Tesla setting up local manufacturing and supplier chains in India, which would greatly support the "Make in India" initiative.

Panasonic has also shown interest in participating in the 20 GWh slot bidding that felt vacant after Hyundai Global Motors withdrew from the Rs 18,100 crore production-linked incentive scheme for advanced chemistry cell battery storage.