Indian Transport Minister Nitin Gadkari has told Reuters that India is ready to offer Tesla large incentives to attract a Tesla production factory to India. Reportedly, the incentives would mean that India’s production would be lower than any other facilities’ cost.
The Transport Minister noted the following in a call.
“The government will make sure the production cost for Tesla will be the lowest compared with the world, even China, when they start manufacturing their cars in India.”
The trade-off for India would be the use of local vendors to supply Tesla with components and labour. These incentives will hopefully set-up India as a hub for auto and component makers through a broader auto production-linked scheme.
Although India currently lacks the domestic EV market that China has, it is positioning itself as a hub for Tesla. The country already makes 80% of the components for lithium-ion batteries locally. India is also looking to set up advanced battery manufacturing units to support the EV market.
Related: Tesla incorporates in India ahead of 2021 launch
For Tesla, India is an attractive option, but the infrastructure has yet to take shape. More will come over the next coming months. But India is certainly doing the right things to attract Tesla and other EV production to its country.