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Tesla will set up manufacturing in India after it selling electric vehicles there next year, according to India's transport minister, Nitin Gadkari.
CEO Elon Musk said that Tesla would "definitely" enter the Indian market, though not in January 2021.
Electric vehicle manufacturers see a lot of sales potential in India, as its n government has set an ambitious goal to reduce the number of gas-powered vehicles on its roads. It also offers subsidies and other incentives to increase the number of EVs on the market.
Mahindra was the first to sell EVs in India.
Last year, Hyundai became the second company to sell electric cars in India with its Kona Electric. The South Korean company praised India for its support for clean and connected mobility.
Since then, Tata and MG Motor have debuted their vehicles in the country, as has Daimler's Mercedes-Benz.
Musk has been planning to sell EVs in India since the summer of 2017. The delay was beneficial as car sales in India dropped sharply in 2019 as new safety and emission regulations drove up prices, and troubles among India's consumer finance providers hit lending.
Other American companies have been retreating from India over the last few years, including General Motors and motorcycle maker Harley Davidson.
