India wants to lure Tesla by offering cheaper production costs than China

1 min


78
13 shares, 78 points

Presented by
RT.com

India wants to lure Tesla by offering cheaper production costs than China

As part of an effort to boost Indian production capacity the country’s transport minister has made a bold offer to US electric car maker Tesla: the cheapest manufacturing cost in the world, even lower than China.

According to Nitin Gadkari, Indian authorities would give higher concessions, if the electric vehicle (EV) pioneer started making the entire product in the country, hiring local vendors, instead of just assembling the cars.
Also on rt.com Elon Musk says he wants new Tesla Roadsters to fly ‘without, you know, killing people’
“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,” Gadkari said in an interview with Reuters.

The offer comes several weeks after the government of the country’s south eastern state of Karnataka revealed that Tesla was planning to set up an electric-car manufacturing unit in the region. The company reportedly incorporated Tesla Motors India and Energy Private Limited with its registered office in the state capital of Bengaluru.

Gadkari added that India could become an export hub for Tesla’s products, highlighting that some 80 percent of components for lithium-ion batteries are currently being made locally.
Also on rt.com What a twist! Bitcoin investments bring Tesla more returns than sales of electric vehicles
India’s EV market is in the early stages of development. Just 5,000 out of a total 2.4 million cars purchased in the country in 2020 were electric.

Competition with China, where Tesla already produces cars, is expected to be tough. Last year, a reported 1.25 million new energy passenger vehicles, including EVs, were sold in China, out of the total sales of 20 million cars. Moreover, China accounted for more than a third of Tesla’s global sales.

READ  More companies are relocating to Austin than anywhere else in Texas. Yes, they're coming from California.

For more stories on economy & finance visit RT’s business section


Like it? Share with your friends!

78
13 shares, 78 points

What's Your Reaction?

hate hate
0
hate
confused confused
0
confused
fail fail
0
fail
fun fun
0
fun
geeky geeky
0
geeky
love love
0
love
lol lol
0
lol
omg omg
0
omg
win win
0
win

0 Comments

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.