Tesla to ‘Start Operations’ in India in Early 2021: Nitin Gadkari

In October, Tesla CEO Elon Musk had made a simiar commitment about the company coming to India “for sure” in 2021.

The Tesla model 3, which is expected to be the first model to launch in India in 2021. 

(Photo Courtesy: Tesla)

Electric vehicle company Tesla is expected to launch in India in 2021, according to Union minister Nitin Gadkari. The statement comes two months after Tesla CEO Elon Musk had made a similar commitment about the car company coming to the country “for sure” in 2021.

Union Minister for Road Transport and Highways and the Minister of Micro, Small and Medium Enterprises Nitin Gadkari on Monday, during an interaction with The Indian Express, said that US clean energy and electric vehicle company Tesla will “start operations” in India in early 2021.

According to the report, Gadkari said Tesla will start operations first with sales and then maybe look at assembly and manufacturing based on the response to the cars. “India is going to become a number 1 manufacturing hub for auto in five years,” he added.

According to an Economic Times report, the first model to come to India will be the more affordable Tesla Model 3, booking for which could start in a few weeks. The report said the sales will happen only in the second half of the year. The completely built units will be imported and are likely to be priced Rs 55 lakh onwards. Tesla will most probably handle sales directly as it does in other parts of the world.

"According to sources privy to the matter, the world's most valued automobile corporation by market cap has sealed plans to resume bookings next month and start delivery by the end of the first quarter of 2021-22," said the report.

Musk, in a tweet reply to a query from India in October, had set the ball rolling by making an announcement. “Next year for sure,” Musk had replied when a handle called Tesla Club India checked with him about the company’s progress in India.

In 2017, a year after the company started taking bookings, Musk had said his cars could come to India in the summer, but later blamed FDI norms for the delay. “Maybe I’m misinformed, but I was told that 30% of parts must be locally sourced and the supply doesn’t yet exist in India to support that,” he had tweeted.