India woos Tesla with offer of cher production costs than China
NEW DELHI: India is ready to offer incentives to ensure Tesla Inc's cost of production would be less than in China if the carmaker commits to making its ric vehicles in the country, transport minister Nitin Gadkari said.
Gadkari's pitch comes weeks after billionaire Elon Musk's Tesla registered a company in India in a step towards entering the country, possibly as soon as mid-2021. Sources familiar with the matter have said Tesla plans to start by importing and selling its Model 3 ric sedan in India.
"Rather than assembling (the cars) in India they should make the entire product in the country by hiring local vendors. Then we can give higher concessions," Gadkari said in an interview, without giving details of what incentives would be on offer.
"The go nment will make sure the production cost for Tesla will be the lowest when compared with the world, even China, when they start manufacturing their cars in India. We will assure that," he said.
India wants to boost local manufacturing of ric vehicles (EVs), batteries and other components to cut costly imports and curb pollution in its major cities.
This comes amid a global race by carmakers to jump-start EV production as countries work towards cutting carbon emissions.
But India faces a big challenge to win a production commitment from Tesla, which did not immediately respond to an email requesting comment about its plans in the country.
India's fledgling EV market accounted for just 5,000 out of a total 2.4 million cars sold in the country last year as negligible charging infrastructure and the high cost of EVs deterred buyers.
In contrast, China, where Tesla already makes cars, sold 1.25 million new energy passenger vehicles, including EVs, in 2020 out of total sales of 20 million, and accounted for more than a third of Tesla's global sales.
Gadkari should become PM.Modi is unfit to become PM,he make too much discrimination among the states and cities.Modi stopped all infrastructure development projects to karnataka for ing 25 MPs.Modi is not approving Metro to IT corridor and to international airport.He approved Metro to 9 cities in UP
It's called Divide and Rule. Lets see how long it can be done....... As long as he can fool the people like some here, it will work.
it seems you bought a flat near that planned metro!!!
R Venkatesh Govind
We should not allow Tesla to come in unless Elon Musk converts to Hinduism under Ghar Wapsi.
Teslas are low quality high priced cars, india doesnt have any infra, wait for thrm to fail and et.
If it is Gadkari who is calling Tesla, then we can expect positive response from Elon Musk.
Wish this decision/effort was made a few years back so that the production plant of China could have come to India. Better late than never!
China is one of biggest EV market hense Tesla have plant in China but just like anything now for exporting outside China componies are looking at alternate place and that is where India wants to compete.
Also... all the other car companies are going irc as well. May be Tata can start a factory making batteries in India.
chaiw gt never bothered to have a comprehensive policy. There could have been many tesla competitors in india by now if it was done properly from 5 yrs back.
India has no infrastructure to support EVs. How will they be charged on the road?
INDIA needs to engage with BOLIVIA simultaneously for exporting raw mined Lithium to facilitate Tesla plan.
also needs to understand where to dump all these lithium batteries after use
Now its a offer after some years he will be taxed heavily
rules are changed everyday, one day you call with low tax next day to add tax, Elon musk is making enough money and to play Russian roulette by coming to India. He will be safe until Reliance or adani don't get into that business, if they do he will loose everything
And we did not learn from East India Company...
INDIA persuing TESLA is very good on many levels&long term.It should become the "FUTURE MARUTI"for INDIA.