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India offers Tesla with cheaper production costs than China

India is ready to provide incentives to ensure Tesla Inc’s cost of production would be less than what it had to pay in China if the automaker commits to making its electric vehicles in the country, transport minister Nitin Gadkari informed Reuters.

“Rather than assembling (the cars) in India, they should make the entire product in the country by hiring local vendors. Then we can give higher concessions,” Gadkari said in an interview, without providing details of what incentives would be provided.

“The government will make sure the production cost for Tesla will be the lowest when compared with the world, even China, when they start manufacturing their cars in India. We will assure that,” he said.

Gadkari said that together with being a big market, India could be an export hub, especially with about 80% of parts for lithium-ion batteries being made regionally now.

“I think it’s a win-win situation for Tesla,” Gadkari said, adding he also wanted to engage with the automaker about building an ultra-high-speed hyperloop between Delhi and Mumbai.

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