Can India make Musk bring a Tesla factory to India?

Last year, Prime Minister Narendra Modi visited the Tesla factory in the US and that gave wings to the speculation that Tesla could set up its factory in India.

Earlier this year, Elon Musk of Tesla Motors said that the new Model 3 would also be sold in India and that the company will enter the Indian market in 2017.

Now, Nitin Gadkari, Minister of Road Transport, Highways visited the Tesla factory in the US with a view to initiate a joint venture between Indian automobile companies and Tesla.

The minister was hopeful that the global leaders would soon join hands with a view to introducing pollution free road transport in India, especially commercial and public motor vehicles.

Gadkari proposed to the 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.

“The Indian Government is committed to encouraging alternate pollution free transport in the country by providing incentives to bio-fuel, CNG, Ethanol and electric vehicles,” Gakari said in a statement.

Nitin Gakari was informed of that 400,000 advance bookings which have been done for Tesla’s model X, which is the fastest sport utility vehicle (SUV).

Urging their interests in the Indian markets, Gadkari told Tesla executives of the progress Indian automobile manufacturers have made in the field of electric vehicles and exuded confidence that very soon Indian market will become very competitive in this sector.

However, Tesla senior executive admitted that their manufacturing hub has to be outside the US for markets in rest of the world and appreciated the Indian offer of cooperation which they said will certainly be considered at the appropriate time in future.

They said India will definitely be a market for their next generation low cost sustainable Model 3.

The minister asked Tesla of their future plans of manufacturing of electric trucks, buses and two wheelers to which they replied that they have plans for trucks and pick up vans but not buses and two wheelers.

“The Tesla team evinced keen interest in knowing whether there was any subsidy on electric vehicles in India,” Ministry of Road Transport and Highways said in a statement.

After which Nitin Gadkari asked Tesla executives to outline their proposals for entry into Indian market.