Talks Begin For Mega Tesla Car Factory And Exports In India, Says Report

Tesla is in discussions with the Indian government to establish a car factory in the country, capable of producing up to 500,000 electric vehicles annually, according to a Times of India report.

The report stated that the electric vehicles manufactured at the proposed factory would have a starting price of INR 20 lakhs.

Led by billionaire Elon Musk, Tesla is also considering India as an export hub, intending to ship cars to countries in the Indo-Pacific region, as per government sources cited in the report.

"Tesla has come to us with an ambitious plan, and we are confident that the movement will be positive this time around, especially as it involves both local manufacturing and exports," a source told TOI.

These discussions mark a change in strategy for Tesla, as last year, talks were halted when the Indian government declined Tesla's request for lower import taxes on cars, which could potentially reach 100%.

Initially, India desired Tesla to manufacture vehicles within the country, but the company preferred first to export cars to assess demand.

During a recent meeting with Musk, Indian Prime Minister Narendra Modi he urged Tesla to make a "significant investment" in India.

After the meeting, Musk expressed his belief in India's potential for a sustainable energy future, including solar power, stationary battery packs, and electric vehicles. He also showed interest in bringing SpaceX's Starlink satellite internet service to the country.

Also Read: Elon Musk Confident of Tesla's Entry into India Following Modi Meeting