Daily Management Review

Indian Minister Claims Tesla Is 'Serious' About Creating A Production And Innovation Base In The Country


Indian Minister Claims Tesla Is 'Serious' About Creating A Production And Innovation Base In The Country
According to India’s deputy minister for technology, the United States based electric car giant Tesla Inc is "serious" about its ambitions of setting up a production base in the country. The comments were made by the Indian minister a day after he held a meeting with the senior executives of the electric vehicle maker.
The Elon Musk-led US manufacturer spoke with Indian officials this week on a variety of issues, including incentives for car and battery manufacturing, according to Reuters on Thursday, as Tesla considers re-entering the Indian market.
"They are very seriously looking at India as a production and innovation base," Rajeev Chandrasekhar said in the first public comment by an Indian government official on the talks.
"We have signalled to them that the government of India is working together (and) will certainly make whatever ambitions they have or investment objective they have in India a success," said Chandrasekhar, who is one of the highest-ranking officials in Prime Minister Narendra Modi's administration.
According to Reuters, Tesla has proposed establishing a facility in India to manufacture electric vehicles (EVs), as well as EV batteries.
When asked if conversations with Tesla encompassed more than just vehicle production, Chandrasekhar stated that "you don't talk about cars alone" during such discussions.
"You talk about cars, you talk about energy, you talk about manufacturing technology. So all of that figures in the conversation. What they will want to do in India, it's too far for me (to tell) and it's not for me to say," he added.
There were no comments available from Tesla on the matter.
The conversations in India signal a reversal in Tesla's attitude, which stated late last year that it was focused on lowering import duties on automobiles, which may be as high as 100%.
The talks broke down because the government wants Tesla to manufacture cars in the country, while the company wants to sell to India first to test demand.
Outside of the United States, Tesla has a facility in Shanghai, China, and another in Brandenburg, Germany.