India urges Tesla to set up plant in India, make it an Asia manufacturing hub

Union minister Nitin Gadkari has asked Tesla to consider making India its Asia manufacturing hub and offered land near major Indian ports to facilitate exports to South and SE Asian countries.

By Autocar Professional Bureau

17 Jul 2016

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India urges Tesla to set up plant in India, make it an Asia manufacturing hub

Less than 10 months after prime minister Narendra Modi’s visit to American electric carmaker’s manufacturing facilities in San Jose, California, Union Minister of Road Transport, Highways & Shipping Nitin Gadkari visited the EV maker’s plant on July 15.

The visit assumes importance given the Indian government’s sharp focus on electric vehicles, eco-friendly fuels and higher spend on transportation infrastructure. Gadkari, while at the Tesla plant, offered to promote joint ventures between the global leader in electric car manufacturing and the Indian automobile OEMs with a view to introducing pollution-free road transport in India, especially commercial and public vehicles.

He said the Indian government is committed to encouraging alternate pollution-free transport in the country by providing incentives to biofuel, CNG, ethanol and electric vehicles. He proposed to Tesla senior executives to make India their Asia manufacturing hub and offered land near major Indian ports to facilitate export of their vehicles to South and South East Asian countries.

What Tesla said

Tesla senior executives acknowledged the fact that a new manufacturing hub has to be outside the US to cater to global markets and appreciated the Indian offer of cooperation, which will be considered at an appropriate time in the future. They said India will definitely be a market for their next-generation, low-cost Model 3 which has seen record bookings of over 400,000 units, including some from India.

Replying to specific queries from Gadkari regarding the manufacture of electric trucks, buses, and two-wheelers, the Tesla team said that while they have future plans for trucks and pick-up vans, buses and two-wheelers are not on the cards.

Gadkari, accompanied by a team of Tesla officials, was taken on a visit to the manufacturing plant which employs cutting-edge robotic automobile assembly operations.

It may be recollected that on September 26, 2015, prime minister Narendra Modi was taken on a plant visit by Tesla CEO Elon Musk (pictured below) where he was shown various innovations in the fields of renewable energy, Tesla’s battery technology and energy storage.

Photo courtesy PIB