Indian auto parts makers' shares gain on report of talks with Tesla

Sandhar Technologies

30/08/2021 08:59

BENGALURU, Aug 30 (Reuters) - Shares of Indian auto parts
suppliers rose as much as 14% on Monday following a report
electric-vehicle maker Tesla Inc  TSLA.O  was in talks with at
least three companies to source critical parts for its planned
entry into the country.
    Tesla, which is looking to set up a factory in India if it
is successful with imported vehicles, is holding early talks
with some companies for the supply of components such as
instrument panels, windshields, differential gears, brakes and
power seats, the Economic Times reported https://economictimes.indiatimes.com/industry/renewables/tesla-in-talks-with-3-local-companies-for-parts-supply/articleshow/85728000.cms?from=mdr
 on Sunday.
    Bharat Forge Ltd  BFRG.NS , Sona BLW Precision Forgings Ltd
 SONB.NS  and Sandhar Technologies Ltd  SNTL.NS  are understood
to be among the Indian companies already supplying components to
Tesla, according to the report. Shares of the three Indian firms
rose as much as 6.2% to 13.7% on Monday.
    Tesla, Bharat Forge, Sona BLW and Sandhar did not
immediately respond to Reuters requests for comment.
    India's auto component makers want Tesla's potential entry
to benefit the country's suppliers, and one way to achieve that
is for the company to manufacture locally, the head of an
industry body said https://www.reuters.com/world/india/indian-auto-part-makers-want-teslas-entry-benefit-local-companies-2021-08-03
 earlier in August.
    Reuters previously reported India was considering slashing
import duties on electric cars https://www.reuters.com/world/india/exclusive-india-considers-sharp-import-tax-cuts-evs-after-tesla-lobbying-sources-2021-08-09
 to as low as 40%.
    The country is the world's fifth-largest car market with
annual sales of 3 million vehicles, according to industry
estimates, with electric vehicles (EVs) making up a fraction of
the total.
    However, EV sales have been gradually rising in the country
as states improve charging infrastructure.
    Elon Musk, the CEO of Tesla, the world's most valuable
automaker by market capitalisation, has tweeted several times
about the company's impending foray into India.
    Tesla registered a local company in January and by April
started scouting for locations https://www.reuters.com/article/india-tesla-idUSKBN2BV0Q3
 to open showrooms in New Delhi, Mumbai and Bengaluru.

 (Reporting by Vishwadha Chander in Bengaluru; Editing by
Shounak Dasgupta)
 ((Vishwadha.Chander@thomsonreuters.com; Mobile: +91 7506036802;
Twitter: https://twitter.com/vishwadha))