Tesla promised ‘greater incentives’ if it readies to manufacture vehicles in India

India seems to be creating a conducive environment to ensure that the production of Tesla begins in India. If the whole strategy works in favor, then it is expected that the production cost would be much lower than in China. 

The whole scenario gains significance in the wake of the statement made by the transport minister Nitin Gadkari who seems to be looking forward to the future outcome of the plan as Elon Musk’s Tesla has done registration of the company in India and it is likely that the company steps in the mid-2021. As per the sources, it is expected that Tesla is going to start its operations by importing and selling Tesla Model 3 electric sedan in India.

As a way to create increasing employment opportunities locally, India has a vision to create loads of opportunities and that’s the reason why it is offering incentives which would eventually mean that the production cost will come down with respect to China. 

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In an interview Gadkari said that he is hopeful that the company is going to actually produce cars here, and not just assemble them. In the even the company started with the production, then India is going to give even higher concessions. In what could be termed as a highly profitable move, while would minimize the production cost, it is expected through this platform that the local manufacturing of batteries, electric vehicles along with other components will get a boost along with the same, it will reduce costly imports. Obviously, it will pave the way for a cleaner environment, considering the fact that these are electric cars. 

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The step gains significance on a global scale where carmakers are directly involving themselves in EV production, so that it ensures a cleaner environment where carbon emissions are reduced. 

However, the only challenge for India as of now is the timely response to the mail, which India has sent requesting about their plans in the country. 

The EV market as of now is quite less at 5,000 given the total production of cars which stands at 2.4 million, as this is the figure of cars sold last year. 

This figure is in direct contrast to the China as Tesla has been manufacturing cars here where it has sold 1.25 million new energy passenger vehicles out of the total sales which stood at 20 million.

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Considering the lack of comprehensive policy which India has, foreign investors don’t get a clear cut vision to start with their strategies, unlike that in China. 

According to Gadkari, India has a big market as it could well potentially become an export hub where whopping 80% components for lithium-ion-batteries are locally manufactured and produced.

If Tesla agrees then it will open a profitable opportunity for them as Gadkari also seem to create a speedy hyper loop between Mumbai and Delhi. 

India is strategizing its schemes in order to attract the companies especially as the rising pollution has sent alarming bells where timely interventions in terms of electric vehicles is need of the hour.

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