Union minister Nitin Gadkari has asked Tesla to start local manufacturing in India, labelling it as a “golden opportunity” for the EV maker
Earlier this year, Tesla confirmed that it would begin operation in India very soon. The manufacturer has already registered an office in India, and is currently scouting locations for setting up dealerships. However, the manufacturer’s initial plans for the Indian market seem to involve retailing imported cars, not locally manufactured ones.
Speaking at Raisina Dialogue 2021, Union Minister of Road, Transport and Highways, Nitin Gadkari, stated that he has urged Tesla to begin manufacturing in India as soon as possible. The minister also said that the EV maker could set up exports from India as well, which would be much more economically viable compared to manufacturing in other countries.
He also said that the company is free to set up manufacturing elsewhere and only retail its electric cars in India. However, if Tesla decides to set up local production, the government of India will offer their support. Tesla can also create industry clusters and develop its own vendors in India.
Nitin Gadkari also stated that India has the potential to become the largest EV producer in the world in the next five years, due to the government’s push for green vehicles in our market. He suggested Tesla should start local manufacturing as early as possible, as Indian manufacturers are expected to reach Tesla standards within two years.
“I had a video conference with Tesla management. And I suggested them that it is golden opportunity for them to start manufacturing here in India because, as far as auto components are concerned, Tesla is already taking a lot of components from the Indian manufacturers,” said Gadkari during the event. “So in the interest of Tesla, I suggest them that you start manufacturing as early as possible. It will be beneficial for you,” he continued.
As per speculations, Tesla’s first vehicle in the Indian market will be the Model 3, and other models could follow later. It will reportedly arrive via the CBU import route, and is expected to have a starting price of more than Rs. 55 lakh (ex-showroom). The US electric vehicle manufacturer is currently only planning to retail its vehicles in major cities in India, like Delhi, Mumbai, and Bengaluru.