f Tesla Inc decides to commit towards manufacturing its electric vehicles in India, transport minister Nitin Gadkari told Reuters that, then India is willing to provide support to ensure the company’s cost of production is lower than in China.
Nitin Gadkari’s proposal came only weeks after Elon Musk’s Tesla incorporated a company in India, paving the way for the company to come to the country as early as mid-2021. Tesla intends to begin by importing and exporting its Model 3 electric sedan in India, as per reports close to the situation.
“Instead of installing (the cars) in India, they could assemble the whole product using local vendors. Then perhaps we can make more concessions,” Gadkari said in a conversation, without mentioning what rewards will be available.
When Tesla starts producing cars in India, the government can ensure that the company’s costs of production are the lowest in the world, including China. “We’ll make sure of it,” he said.
India aims to expand local production of electric vehicles (EVs), batteries, and certain other elements to mitigate emissions in its major cities and save money on imports.
India needs to increase domestic production of electric vehicles (EVs), batteries, and certain other elements to mitigate emissions in its major cities and save money on imports.
This occurs as carmakers battle around the world to jump-start EV manufacturing as countries seek to curb carbon emissions.
However, convincing Tesla to pledge to manufacture in India would be challenging, as the company didn’t initially reply to an email seeking comment on its plans in the region.
Due to a shortage of charging facilities and the high cost of EVs, India’s fledgling EV industry is responsible for just 5,000 out of a record 2.4 million cars sold in the country last year.
In comparison, China, where Tesla currently manufactures automobiles, sold 1.25 million sustainable energy automobiles, including EVs, out of a total of 20 million vehicles sold in 2020, accounting for more than a third of Tesla’s global sales.
Swapping to renewable sources of energy and lowering car emissions are seen as crucial for India to fulfill its climate commitments under the Paris Agreement.
Last year, India adopted tighter emission laws for vehicle producers in order to get them up to global norms. It is also considering reforming fuel efficiency regulations, which industry officials expect would require certain manufacturers to add hybrid or electric cars to their lineups beginning in April 2022.