Updated: Apr 17, 2021
Mr.Nitin Gadkari, Union Minister for Transport and Highways has exhorted Tesla to set up its manufacturing unit in India. He highlighted the country's thrust on e-vehicles to emphasize his point.
At the Raisina Dialogue, he mentioned that while Tesla is already sourcing various auto components from Indian Manufacturers, it should now take the next big step and set up a manufacturing base here.
"I will suggest to them (Tesla) that it will be a golden opportunity for them to start manufacturing facility in India because as the automobile components are concerned, already Tesla is taking a lot of components from the Indian manufacturers. So there will be availability," the minister said.
He exuded confidence that the Indian Market offers a lot of opportunities for Tesla Sales. There have been substantial improvements in the quality of Indian Products and they are now competent to manufacture as per the exacting standards of Tesla.
"So in the interest of Tesla, I suggest that you start manufacturing as early as possible. It will be beneficial for you," Gadkari said.
India was supportive of Tesla manufacturing elsewhere and marketing in India but would much prefer if the manufacturing too was done in India. "If they manufacture here in India we will support them," he said. He expressed that Tesla could develop Industrial Clusters and its own Vendors in those clusters.
"They can export a lot of vehicles from India and as compared with the other countries, it will be economically viable," the minister said. Emphasizing the government thrust on e-Vehicles, he expressed confidence that within a span of six months to one year, there could be a lot more e-vehicles on the roads. "It is good for them (Tesla). I request them and suggest them but it is up to them to decide about it. But meanwhile, within two years whatever the e-vehicles we are getting into the market from Indian companies, they will be up to the mark of Tesla," he asserted.
The minister also added that Tesla wants to start marketing, beginning with Bengaluru, Delhi, and Mumbai initially.
The vehicles scrapping policy and its benefits were explained by Mr.Nadkarni. Post-approval to the vehicles scrapping policy, "within five years India will be number one manufacturing hub for electric vehicle in the world", he said. The scrappage policy could also help in the easier availability of the metals like steel and aluminium as also the other products like rubber. This would make the mass production of EVs viable.
The Government Departments and PSUs, with a huge quantity of older vehicles, would be drawing up plans and encouraged to scrap the older vehicles for newer technology vehicles, he said.
The minister said that India has the potential to become the largest EV (electric vehicle) producer in the world within the next five years. The Minister has been pushing for green fuel and electric vehicles as India aims to cut its huge ₹Rupees 8 lakh crore crude imports.
Earlier this year, Tesla registered its Indian arm. Tesla Inc co-founder and chief executive Elon Musk had in October 2020 said the company will enter the Indian market in 2021.
The Maharashtra and Karnataka government have already held discussions with Tesla to invite them to set up their manufacturing base in their respective states.
The minister also mentioned that India is also promoting ethanol, methanol, and bio CNG to reduce the dependence on fossil fuels. The Pandemic has wrecked distress across sectors but India is waging the battle bravely and expects to come out as a winner.