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    Tesla can get more sops for operations in India, but there is a condition

    Tesla can get more sops for operations in India, but there is a condition

    Tesla can get more sops for operations in India, but there is a condition
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    By CNBCTV18.com  IST (Updated)

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    Elon Musk’s Tesla registered a company in India in January 2021. According to sources, Tesla aspires to start by importing and selling its Model 3 electric sedan in India

    Road Transport and Highways Minister Nitin Gadkari recently said that India can offer incentives to ensure that Tesla's cost of production in the country would be less than what it was in China. On its part, the electric car maker should commit to making the entire product in India by sourcing from local vendors, and not just assembling the cars over here, Gadkari said.
    In January this year,  Tesla registered a company in India as a precursor to setting up operations. According to sources, Tesla aspires to start by importing and selling its Model 3 electric sedan in India.
    India is pressing hard to promote local manufacturing of electric vehicles (EVs), batteries, and other components to reduce expensive imports and control pollution in its major cities. Last year, India’s new EV market accounted for just 5,000 out of an overall 2.4 million cars sold in the country. This is primarily due to negligible charging infrastructure and the high cost of EVs discouraged buyers.
    As compared to this, China sold 1.25 million new energy passenger vehicles, including EVs, in 2020 out of total sales of 20 million. It accounted for over a third of Tesla’s international sales. China is the world’s biggest auto market. Like China, India doesn’t have a comprehensive EV policy like China.
    China has a policy for companies, according to which, they need to invest in the sector. Gadkari stated that India has to potential to emerge as an export hub, more so with almost 80% of components for lithium-ion batteries being made locally now. For auto and auto component makers, India is drawing up a production-linked incentive scheme. Apart from this, it is also establishing modern battery manufacturing units.
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