China made an exception to its local manufacturing norms for the Tesla factory to come up in Shanghai. Photo: ReutersNew Delhi: China made an exception to its local manufacturing norms, a sufficient-enough incentive to spur Elon Musk’s Tesla Inc. to decide on building its first automobile factory outside of the US in Shanghai. The deal with Shanghai’s government will allow the Silicon Valley-based automaker to build a wholly owned factory in the city’s free-trade zone, the newspaper reported. A Tesla factory in China may also mean that Musk may have overlooked Indian overtures to make the country a manufacturing hub for exports to south- and south-east Asian countries. The government is also considering benefits including zero import duties on electric vehicles as well as lower electricity costs.

Source: Mint October 23, 2017 16:30 UTC