Tesla has begun active discussions with the Indian government to set up its local factory in the country paving way for Electric Vehicle (EV) acceleration and sales. The move aims to enable Tesla to manufacture EVs in India at affordable rates.
Tesla plans to produce up to 5 lakh EVs annually, with prices starting from Rs 20 lakh, reported Times of India.
The initiative would be a big boost to the 'Make in India' campaign. Tesla has been eyeing the Indian market for sometime as the EV market is emerging in India.
The TOI report also said that the “ambitious” plan of Tesla also involves local manufacturing and exports.
The electric car maker is also using India as an export base to ship cars to countries in the Indo-Pacific region.
Earlier, Musk had expressed the interest in building a local factory in India. "He (Modi) is pushing us to make significant investments in India, which is something we intend to do. We are just trying to figure out the right timing...I am confident that Tesla will be in India and will do as soon as possible," said Musk in June during Modi's United States (US) state visit.
He had also added that he is "a fan of Mr Modi".
Tesla aims to make its cars affordable in India, paving the way for higher sales and enhancing its competitive position in the Indian EV market.
The commerce and industry ministry is in talks with Tesla and is hoping for a good deal.
Reportedly, ahead of Modi's US visit the company representatives had visited India and started a dialogue.
Tesla and the Indian government have been engaging for more than two years to evaluate a pathway for the electric car maker to enter India. Tesla had dropped plans to enter the Indian market following the failure to get special incentives from the government on import duty.