Tesla is in discussion with the Indian government to setup a factory in the nation with the capacity of producing half a million electric cars annually, the Times of India reported on Thursday, citing government sources.
The company headed by Elon Musk is also planning to use India as an export base to ship cars to countries in the Indo-Pacific region, as per the report.
The starting price of Tesla in India would be Rs. 2 million, which is more than the double of the countries cheapest EV, MG Comet. It is also half a million expensive than Tata Nexon EV, which is India’s top-selling electric vehicle.
Last year, the company’s plan to enter Indian market was stalled as the Indian government did not agree on lowering the import taxes, which are as much as 100% for electric vehicles. Moreover, India was keen on Tesla manufacturing the cars locally, however, the company said that it would first import the vehicles to test the strength of demand.
In renewed efforts to enter the domestic market with a change of stance, Tesla held discussions in May with the government officials about the incentives to be offered to their cars and battery manufacturers in the country.