Finance Minister Nirmala Sitharaman remarked on Thursday, April 18, that Tesla’s interest in establishing operations in India would convey a positive message globally. She emphasized that the presence of a major manufacturing player like Tesla in India would enhance the country’s manufacturing environment and validate its policies, potentially benefiting India’s exports.
Tesla holds several advantages as one of the pioneering companies in the electric vehicle (EV) industry worldwide. The company’s strong brand recognition, established global plants, advanced technology, proven performance, extensive charging network, and control over its supply chain contribute to its resilience. Additionally, Tesla’s early entry into the market allows it to pursue aggressive expansion strategies and innovative business models, such as direct sales and subscription services.
NITI Aayog CEO Amitabh Kant also expressed optimism about India’s new EV policy facilitating Tesla’s entry into the Indian market. The policy offers various incentives, including reduced customs duties and import limitations linked to investment commitments, to attract international manufacturers to establish production facilities in India.
However, Kant acknowledged the challenge of developing infrastructure to support long-distance travel for EVs, particularly the limited availability of charging stations. He highlighted the importance of green hydrogen for long-distance transportation while noting that electric vehicles would dominate the two-wheeler, three-wheeler, and four-wheeler segments. Kant emphasized the need for a vast number of charging stations in India and mentioned Tesla’s initiative to make its charging stations interoperable, enabling other vehicles to utilize them.