Gadkari assures Tesla of lower cost of manufacturing than China
What's the story
Union Minister of Road Transport and Highways, Nitin Gadkari has said that India is ready to offer incentives to US automaker Tesla to ensure that its production cost here is cheaper than China. The offer comes nearly two months after the company registered itself in the country in mid-January and appointed three directors to lead its operations. Here are more details.
Assurance
'Tesla's production cost in India will be world's cheapest'
In an interview with Reuters, Gadkari assured that Tesla's production cost in India will be the lowest in the world. "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," said Gadkari.
Future plans
Creation of Delhi-Mumbai hyperloop also on government's radar
Adding to his pitch, the minister told Reuters that India could be an export hub due to its big market, especially since around 80% of components for Lithium-ion batteries are manufactured locally. Gadkari said that it is a win-win situation for Tesla and that he wants to engage with the company to create an ultra-high-speed hyperloop between the cities of Delhi and Mumbai.
Operations
Tesla's first manufacturing facility to be opened in Karnataka
In February, Chief Minister of Karnataka, BS Yediyurappa had confirmed that Tesla would open its first electric car manufacturing unit in India in Karnataka. Meanwhile, the Elon Musk-led EV giant has already set up an R&D division in Bengaluru and is negotiating with local officials for setting up a car assembly unit in the city's suburbs.
Information
Tesla's entry will usher EV boom in India
India faces tough competition from other countries in wooing EV makers as others are working on reducing carbon emissions. Tesla's entry might act as a catalyst for electric vehicles on our shores and encourage other foreign EV companies to start operations in the country.