Is Tesla Coming to India? The carmaker has Proposed Setting EV Plant in India, Reports Says

According to a report from Reuters, Tesla Inc has proposed that Indian government officials set up a factory in India to procure Tesla electric cars. Senior executives from Tesla are on a two-day visit to meet with Indian government officials on May 17 and 18. It's anticipated that the officials can discuss issues like local procurement of parts rather than lowering import taxes.

Citing a piece of Information, a Reuters report said that Tesla executives decided to offer this new proposal after India refused to lower import taxes on Tesla cars, which can be as high as 100%.

While the Indian government wants Tesla to set up a plant in India and manufacture its cars locally, Tesla aims to test the Indian market first by importing and selling cars.

Recent reports show Tesla didn't ask government officials to lower import taxes. It only discussed establishing a new factory without clarifying investment or location.

The procurement of cars locally aligns with Prime Minister Narendra Modi's aim to encourage companies to participate in the "Make in India" campaign, especially when companies set up secondary supply chains beyond China.

According to another source, Tesla executives met government officials from the PM office and other ministries on Wednesday. This meeting was held a week before PM Narendra Modi's United States visit in June.

The leading electric carmaker again showed interest in selling cars in India, but this time Tesla plans to set up a production facility to cater to domestic and international demands.

Moreover, Tesla hired a local team to discover some showroom space but discontinued it last year. The carmaker is also anticipated to resume this process in the coming days.

(Note: The news is based on inputs found on Mint and other sources.)