Gadkari Woos Tesla For Local Manufacturing Of EVs, Says Govt Will Ensure Production Cost Even Lower Than China

Gadkari Woos Tesla For Local Manufacturing Of EVs, Says Govt Will Ensure Production Cost Even Lower Than ChinaTesla’s factory in Fremont, California (representative image) (Justin Sullivan/Getty Images)

Union Road Transport and Highways Minister Nitin Gadkari has invited American electric car maker Tesla to start manufacturing its vehicles in India and offered to provide incentives to ensure company's production cost would be leass than in China.

The development comes weeks after Tesla made official entry into India by registering a company in Bengaluru and is reportedly planning to start its operations by importing and selling the Model 3 electric sedan in the country.

In an interview with news agency Reuters, Gadkari said that the government could give "higer concessions" to Tesla if it opts for manufacturing its cars in India by hiring local vendors rather than assembling them in the country.

"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 was quoted by Reuters as saying.

However, the minister did not divulge the details of the incentives that would be on offer if Tesla opts for making its products in India.

The minister, however, added that the incentives on offer will make Tesla's production cost in India lowest in the world, even when compared with China.

"The government 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," Gadkari added.

The development comes as India is looking to boost local manufacturing electric vehicles, batteries and other components to cut imports as wells as reducing pollution in cities.

Gadkari futher said that India not only provides a big market to Tesla but could also be an export hub for the leading EV maker, especiall with about 80 per cent of lithium-ion battery components being manufactured in the country now.

"I think it's a win-win situation for Tesla," Gadkari said.

The minister further said that he aslo wanted to engage with Tesla about building an ultra high-speed hyperloop between Delhi and Mumbai.

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