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India invites Tesla to set up manufacturing plant; proposes sops

Tesla Model 3 Photos

The company is reported to be in talks with China to set up a plant in Shanghai province.

Transport Minister Nitin Gadkari who is currently in the US has visited Tesla Motors’ factory near San Francisco. During the visit, the minister met top officials of the American EV maker and extended an invitation to set up a manufacturing factory in India with a local JV partner.

To make a convincing case, the minister has also announced various sops including land parcel if Tesla decides to locate its plant in the country.

2017 Tesla Model S

An export hub in Asia would be of strategic importance to Tesla.

Tesla is looking to set up an Asian manufacturing hub which would play a crucial role in extending its market presence in this part of the world. Recent reports suggested that the company officials are talks with authorities in China to set up a plant in Shanghai province. However, the company officials declined to comment on it.

If India manages to convince Tesla to establish a manufacturing facility in India, it would go a long way in increasing the acceptance of electric vehicles in the markets. As a part of the proposal, Mr. Gadkari also assured Tesla that he would make exports to other Asian markets from one of India’s well-established ports conducive.

Tesla Model X 2016 Geneva Motor Show

Tesla’s manufacturing presence in India would be influential in increasing the EV penetration in the local market.

A senior executive of Tesla stated that the company appreciates the Indian government’s offer of cooperation and added that the proposal will certainly be considered at an appropriate time in the future. The company also stated that India will definitely be a market for its next gen low-cost sustainable models.

Tesla Model X – Photos

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