ALBAWABA – Tesla has engaged in talks with the Indian government for an investment proposal to set up a car factory in India with an annual capacity of 500,000 electric vehicles, news agencies reported Thursday.
A Times of India report said vehicle prices will start from $24,400.66 (2 million rupees).
The report, citing government sources, claimed Tesla is looking to establish a Tesla export hub in India to serve the Indo-Pacific region.
These talks with India show a shift in strategy for the electric car maker.
Last year, talks stalled after the Indian government refused to agree to a request from Tesla seeking lower import taxes on cars, up to 100 percent, Reuters reported.
The government was keen for Tesla to manufacture vehicles locally, but the company said it wanted to export its cars first so that it could test the demand strength, the news agency said.
Tesla discussed incentives with government officials on car and battery manufacturing, back in May.
In a meeting with Tesla chief Elon Musk last month, Indian Prime Minister Narendra Modi discussed with the carmaker "significant investment" in India.
India has strong potential for a sustainable energy future including solar power, stationary battery packs and electric vehicles, Musk said after meeting Modi. Adding that he hopes to bring SpaceX's Starlink satellite internet service to the country as well.
