India Lures Tesla With Offer of Cheaper Manufacturing Costs Than China

In an effort to increase India’s production capacity, the country’s transport minister has made an effort to lure Tesla to set up a factory, by offering the US electric car maker the cheapest manufacturing costs in the world.

According to an interview with Reuters, transport minister Nitin Gadkari revealed that India’s government has reached out to Tesla, offering an incentive package that would ensure manufacturing costs are the lowest in the world— even lower than the current costs at Tesla’s Shanghai factory. Tesla CEO Elon Musk previously entertained the idea of selling cars in India, and in January confirmed that he was currently in the midst of opening several Tesla showrooms.

However, Gadkari noted that he would prefer Tesla to create an entire assembly line of electric vehicles, in which event Indian authorities would grant higher concessions. “Rather than assembling (the cars) in India they should make the entire product in the country by hiring local vendors. Then we can give higher concessions,” Gadkari told Reuters. “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,” he continued.

The offer was made several weeks after the government of India’s south eastern state of Karnataka revealed that Tesla has taken an even further step in establishing a market in the country, with plans to construct an electric-car manufacturing unit in the region. The US EV company had reportedly incorporated Tesla Motors India and Energy Private Limited with the state’s registered office in Bengaluru.

India, which last year introduced tightened emission regulations for automakers, still has a long way to go before it can meet its Paris Accord climate commitments. India’s emerging EV market accounted for only 5,000 out of a total 2.4 million vehicles sold in the country in 2020. The country’s decaying electricity infrastructure, as well as the relatively high cost of electric vehicles were a large deterrent to buyers.

In comparison, out of 20 million cars sold in China last year, 1.25 million of them were zero-emission vehicles. Moreover, China accounted for over one-third of Tesla’s global sales. However, given the current deteriorating relationship between Musk and China following a number of quality control complaints, India’s offer may sound more and more enticing with each passing Tesla scandal.


Information for this briefing was found via Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

One Response

  1. Cost of charging an EV is higher than petrol and diesel compare montly bills for gas and electricity for households. Its a game for the rich not general public .

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

Giant Mining Encounters Native Copper As Hole MHB-34 Hits 563 Metres Depth

Verses Hits Commercialization Stage With Genius AI Platform

Related News

Disappointing 1Q 2022 Earnings Results of Auto Parts Suppler Could be Warning Sign for Entire Auto Industry

On April 22, Stockholm, Sweden-based auto supplier Autoliv, Inc. (NYSE: ALV) reported disappointing 1Q 2022...

Saturday, April 23, 2022, 09:00:00 AM

Tesla to Cut Battery Jobs at Shanghai Factory

According to insider sources, Tesla Inc. (Nasdaq: TSLA) is dropping the axe on some battery...

Saturday, July 8, 2023, 03:21:00 PM

Major Chinese Crypto Exchange Bans Bitcoin Mining Operations

In a further effort to curtail bitcoin mining and subsequent cryptocurrency use in China, a...

Tuesday, May 25, 2021, 02:21:00 PM

Why Did Tesla Convert 75% Of Its Bitcoin Holdings?

Faster than its accumulation of the digital asset, Tesla (Nasdaq: TSLA) just liquidated around three-quarters...

Thursday, July 21, 2022, 11:22:00 AM

Elon Musk Closes Out Week With Further Stock Sales, Bringing Total To $6.9 Billion

In a move surprising absolutely no one, Elon Musk on Friday continued his trend for...

Sunday, November 14, 2021, 12:12:00 PM