Union Minister Nitin Gadkari said American electric car major Tesla is set to start its operations in India next year and would also look at setting up of a manufacturing unit based on demand.
The Road, Transport and Highways minister has been pushing for green fuel and electric vehicles for cutting India's huge Rs 8 lakh crore crude imports.
Tesla Inc. co-founder and chief executive Elon Musk had in October said the company will enter the Indian market in 2021.
"American auto major Tesla will have its distribution facility (sale centres) for its cars in India from next year and considering the demand it would look into setting up of manufacturing here. India has the potential to become the largest EV (electric vehicle) producer in the world in the next five years," Gadkari told.
With India's pledge to reduce carbon emissions by 30-35 per cent by 2030 and efforts to cut down on Rs 8 lakh crore-worth crude oil imports, the focus is also on green fuel and electricity as well as EVs, the minister said.