Tesla is going to discuss with India’s commerce minister about the plan to build a new car factory. Reuters said that the meeting will be held somewhere in this month.
According to sources, Tesla has expressed interest in setting up a factory in India. Where low-cost electric vehicles (EVs) will be produced for India’s domestic market as well as exports. Government officials have called for local production of EVs after efforts to reduce import taxes on EVs in India failed. As part of this, the world’s most populous country is going ahead with discussions with Tesla.
Last June, when Indian Prime Minister Narendra Modi visited the US, he met Tesla CEO Elon Musk. Business magnate Musk then announced that he would invest a huge amount in India. After that meeting, the informal meeting with India’s commerce minister will be the highest-level discussion between Tesla and the Indian government.
Currently, EVs account for a little less than 2 percent of the total vehicles sold in India, the world’s third-largest auto market. In May, Reuters reported that Tesla’s senior executives had visited India. They discussed setting up car and battery manufacturing plants in India with government officials.