Beijing (PingWest)—India is ready to offer incentives to ensure Tesla’s cost of production would be less than in China if the carmaker commits to making its electric vehicles in the south Asian country, the country's transport minister Nitin Gadkari told Reuters.

Previously, Reuters reported that Tesla plans to start by importing and selling its Model 3 electric sedan in India.

“Rather than assembling (the cars) in India they should make the entire product in the country by hiring local vendors. Then we can give higher concessions,” Gadkari said in an interview, without giving details of what incentives would be on offer.

“The government will make sure the production cost for Tesla will be the lowest when compared with the world, even China, when they start manufacturing their cars in India. We will assure that,” he said.

As countries work hard to reduce carbon emissions, global automakers are scrambling to start producing electric cars. India hopes to promote local production of electric vehicles (EV), batteries and other parts to reduce expensive imported goods and curb pollution in its major cities.

India’s fledgling EV market accounted for just 5,000 out of a total 2.4 million cars sold in the country last year as negligible charging infrastructure and the high cost of EVs deterred buyers, said Reuters.

The lack of locally produced components and batteries, negligible charging infrastructure and the high cost of EVs stalls the market.

According to Reuters, the country is formulating production-related incentive plans for auto and auto parts manufacturers and establishing an advanced battery manufacturing department, but the specific details have not yet been finalized.