New Delhi: India is nearing a deal closure with Elon Musks Tesla Inc. to enable the American automaker to export its electric vehicles to the country starting next year and establish a manufacturing facility within two years, Bloomberg reported citing sources familiar with the developments.
An official announcement may be made during the Vibrant Gujarat Global Summit in January, said the report, quoting the people.
Gujarat, Maharashtra, and Tamil Nadu are being considered as potential locations for the factory, given their well-established ecosystems for electric vehicles and exports.
According to the report, Tesla is expected to make an initial investment of approximately $2 billion in the plant, and the company aims to increase its procurement of automotive components from India to potentially reach $15 billion.
Tesla also wants to explore local battery production in India to bring down costs, stated the report.
After a year-long deadlock, Tesla and India, the worlds third-largest automobile market, resumed discussions in May.
While Elon Musk has criticised Indias sky-high import taxes and electric vehicle (EV) policies, India cautioned Tesla against selling cars in the country that are manufactured in China.
However, India is now mulling a reduction in import taxes for global EV manufacturers for a period of five years, provided these companies make a firm commitment to establishing local manufacturing units, according to reports.
The report added that Teslas India-manufactured vehicles may be priced as low as $20,000 in the local market.
