The localization story of Elon Musk’s Tesla: India versus China deal

The government’s new electric vehicle policy offers a number of key conditions that appear more attractive to automakers than what Tesla was able to get from China when it set up its Shanghai factory in 2019.

Under the new policy, India has offered a localization timeline of achieving domestic value addition (DVA) of 25 percent in three years and 50 percent in five years from the date of issuance of the approval letter.

In China, on the other hand, 95 percent of the components used in the factory are purchased locally, creating new raw materials

First print: April 21, 2024 | 11:46 PM IST

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