Tesla manufacturing in India would be a 'win-win' for Musk, India: Gadkari

Dwells on top domestic and global players that are coming up with high-performing electric four-wheelers, points to surging demand for the new tech that Tesla has claimed to champion over past decade

Requesting Tesla chief executive officer Elon Musk to manufacture the electric four-wheelers in India, Union minister Nitin Gadkari on Tuesday said that the competitiveness of the country's automotive parts industry and market would ensure that it's a win-win for both Musk and India.

“In India, there is a huge market. So it is a win-win situation for both (Musk and India). All automotive part manufacturers are available here,” Gadkari said, adding that it will result in ‘good profits’ for Musk and ‘good economics’ for India.

In his address at Ministry of External Affairs’ Raisina Dialogue, the road transport and highways minister was talking about how all major domestic and international automakers are coming up with high-performing electric four-wheelers, signifying that there’s a rapidly growing demand for the new technology, which Tesla has claimed to champion over the last decade.

“If Elon Musk is ready to manufacture Tesla in India, there’s no problem. We’ve got competency and technology - the vendors are available and that can reduce the cost. India is a huge market, he can manufacture and even export from here. We have ports. But suppose he wants to manufacture in China and sell in India — that isn’t a good proposition for India,” the minister said.

The issue had come to light on Twitter last year, when Musk said that high import duties in India had been stopping the automaker from foraying in the Indian market. Responding to a tweet on the company’s plans to launch its products in India, Musk had tweeted: “Still working through a lot of challenges with the government.”

Speaking on the subject for the first time after his warning to EV original equipment manufacturers (OEMs), he also said that the government is constantly working with two-wheeler manufacturers to ensure that the EV fire incidents are resolved soon. He said that March, April, and May are particularly concerning for the two-wheeler EV batteries as temperatures are constantly rising.

“We have decided to make rules and regulations for that. Only with appropriate testing, we can certify batteries,” he said, adding that strengthened regulations will be put in place on the basis of the findings of the expert committee constituted by the ministry.

The mininster once again requested OEMs to voluntarily recall their vehicles if they find issues in batches that could potentially be life-threatening for consumers.

"We don’t want to create obstacles for the industry's growth but safety is the most important priority for us," Gadkari said, adding that the technology is nascent, and things will improve in due course of time.

Over the past month, several e-scooters have caught fire, due to failure of batteries to handle the rising temperatures during Indian summers. In multiple instances, these fires have caused injuries and deaths.