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Indian-made Tesla electric cars promise to be the cheapest in the world
Like other progressive governments, Indian authorities are seeking decarbonization. In this regard, electric vehicles will play a role. It is important for India to expand the production of electric cars at home and not a screwdriver, but a full-fledged one with the release of components on the spot. The first step in this direction should be the construction of a Tesla electric vehicle plant. To stimulate these plans, the Indian authorities promise the lowest production costs in the world.
Image source: Reuters
India is poised to offer Tesla such incentives so that the cost of producing electric vehicles for the company is even less than in China if the automaker commits to expand production in the country. Elon Musk on Twitter promises to build a plant in India, and the authorities of Karnataka even announced this event. In fact, Musk just registered in India a subsidiary of Tesla Motors India and Energy Private Limited with an office in Bangalore and, according to rumors, from the middle of this year plans to start importing Model 3 electric vehicles into this country.
Indian Transport Minister Nitin Gadkari said yesterday: “The government will ensure that Tesla’s production costs are the lowest worldwide, even with China, when they start producing their vehicles in India. We will provide it «. But so far the authorities have not announced a set of measures to stimulate the production of electric vehicles in the country. Moreover, the Indian government has no specific plans for decarbonizing production and the economy as a whole, except for the obligations under the Paris Agreement.
Against the background of India and other countries, China looks like a model for the implementation of long-term programs for decarbonization of the same transport. For example, last year in China, 1.25 million electric vehicles were sold out of a total of 20 million units, while in India only 5,000 out of 2.4 million were sold. In China, infrastructure for servicing electric transport is being rapidly created, and in India it is all in its infancy. Therefore, with all due respect to the Indian authorities, it should be recognized that promises alone will not be full.
For a full-fledged production of Tesla electric cars in India to be cheaper than in China, grandiose structural changes are needed in a lot of industries, and this takes years and years of work. A good example is plans to build a semiconductor plant in India. These plans will soon be two decades old, and no one has ever begun this process.