Union Minister Nitin Gadkari on Monday said that electric car manufacturer Tesla would start its operations in India in 2021, news agency PTI reported. Gadkari also stated that the American car major would look at setting up a manufacturing unit based on the demand.

"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 PTI.

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.

In October, Tesla co-founder Elon Musk had announced that the company would enter Indian market in 2021.