New Delhi: The executives of US-based electric car maker Tesla engaged in discussions with Indian officials regarding potential domestic incentives for car and battery manufacturers, indicating that the company is reconsidering its entry into the Indian market, Reuters reported citing a source familiar with the matter.
According to Reuters, the Elon Musk-led company has put forward a proposal to establish a manufacturing facility in India for producing electric vehicles (EVs). There are also discussions regarding the local manufacturing of EV batteries.
Senior executives from Tesla are, reportedly, in India and held meetings on Wednesday with officials from the Prime Ministers Office (PMO), Ministry of Road Transport and Highways, and Ministry of Heavy Industries in New Delhi. They were also scheduled to meet Union Road Transport Minister Nitin Gadkari.
Tesla is still testing the waters and trying to understand the local policies, said the person, who declined to be named as the talks were private, the report stated.
Tesla, which currently has manufacturing facilities in the US, China, and Germany, is exploring the option of establishing an additional manufacturing plant.
India is among the potential locations being considered for this expansion, according to sources familiar with the matter.
The company is evaluating one or two countries as potential options for the new facility.
According to a source cited by Reuters, Tesla has reportedly submitted a proposal to establish a factory in India for manufacturing electric vehicles intended for both domestic sales and exports. However, an official confirmation regarding this proposal is still awaited.
In the past, Tesla had requested a reduction in the import duty imposed by the Indian government on electric vehicles.
Currently, Teslas vehicles, priced above $40,000, are subject to a 100 percent import duty in India, while the more affordable models face a 40 percent duty.
Initially, India declined to lower the duties but expressed interest in the possibility if Tesla were to establish a manufacturing unit and generating employment opportunities within the country.
