Nitin gadkari, India's transport minister, said today that if Tesla promised to produce electric vehicles in India, India would provide incentives.
India offers Tesla the best terms if it makes cars at home
A few weeks ago, Tesla registered a company in India, taking a step towards entering the Indian market. Tesla is expected to enter the Indian market as soon as the middle of this year. Tesla initially plans to import and sell model 3 electric vehicles in India, people familiar with the matter said.
"It's not just about assembling cars in India, they should manufacture the whole product in India by hiring local suppliers," gadkari said in an interview today. In this way, we can make more concessions. " Gadkari did not say what incentives would be offered.
"When Tesla starts producing cars in India, the Indian government will ensure that Tesla's production costs are the lowest, and we will guarantee that," gadkari said
Gadkari said that India is not only a big market, but also an export center, especially now about 80% of lithium-ion battery parts are produced locally.
"I think it's a win-win situation for Tesla," gadkari said In addition, gadkari also said that he hopes to contact Tesla to discuss the construction of a "super high speed rail" between Delhi and Mumbai.
India wants to promote local manufacturing of electric cars, batteries and other components to cut expensive imports and curb pollution in its major cities.
Tesla has yet to respond to requests for comment. But analysts say India faces a huge challenge to win Tesla's production commitment.
Last year, electric vehicles accounted for only 5000 of the 2.4 million vehicles sold in India, because of their inadequate charging infrastructure and the high cost of electric vehicles.
In contrast, 20 million cars were sold in China last year, and new energy passenger cars accounted for 1.25 million, more than one third of Tesla's global car sales.
Moreover, India does not have a comprehensive electric vehicle policy like China. China is the world's largest auto market, and Chinese companies are also actively investing in the industry.