Ahead of Tesla Inc. (NASDAQ:TSLA) planned entry into one of the world's largest auto markets, India's transport minister said the electric vehicle manufacturer should make cars in India and must not import it from China.
What Happened: At India's foreign policy and geoeconomics conference, Raisina Dialogue 2022, the Union Minister of Road Transport and Highways of India, Nitin Gadkari, said that Elon Musk-led Tesla is welcome to set up shop in India, make cars in the country for sale, and export them.
"If Elon Musk is ready to manufacture in India, there is no problem. We have got all competence –the vendors are available, we have got all technology, and because of that, you can reduce the cost," he said.
"But suppose he wants to manufacture in China and sell In India — it is not a good proposition for India," he added.
Gadkari further said that global manufacturers, such as Tesla, should set up their manufacturing facilities in India, and "the government will provide all the support to help foreign manufacturers."
Tesla fans have been desperately waiting for the company to sell its EVs in India. The company has already set up its subsidiary, with the name of Tesla India Motors and Energy Private Limited. However, Musk also suggested the EV maker is facing difficulty navigating the country's regulations.
Meanwhile, the electric vehicle retail sales in the country witnessed over a three-fold jump in the last fiscal year, with more and more Indian preferring EVs amid the rising fuel prices.
Tesla would rival the likes of Tata Motors Limited ADR (NYSE:TTM) and Fisker Inc (NYSE:FSR) — which recently announced its India headquarters in Hyderabad — in the country.
Photo: Courtesy of the World Economic Forum on Flickr
