Tesla has begun talks with the Indian government, For an investment plan to build a car factory in India with a potential annual capacity of up to 500,000 electric vehicles.
According to the article, prices for the cars will start at 20 Lakh rupees ($24,400.66).
According to the report, which cited government sources, Elon Musk’s company is also exploring using India as an export centre as it gets ready to ship cars to countries in the Indo-Pacific region.
The conversations with the Indian government reveal a change in direction for the American electric vehicle manufacturer.
After the Indian government rejected Tesla’s demand for a reduction in the import levies on cars, which may be as high as 100%, negotiations came to an end last year.
Tesla said it intended to export its cars first so that it could gauge the intensity of demand, despite India’s desire for it to produce cars there.
According to Reuters, Tesla met with officials in May to discuss government subsidies for the production of cars and batteries as part of a fresh push to penetrate the domestic market with a different approach.
Indian Prime Minister Narendra Modi pressed Elon Musk to make a “significant investment” in India during a meeting they had last month.
After meeting Modi, Musk declared that India has significant potential for a sustainable energy future that includes solar power, stationary battery packs, and electric vehicles. He also expressed his desire to introduce SpaceX’s Starlink satellite internet service to the nation.
