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Tesla has started talks to build an electric vehicle factory in India, according to a report. The move came after the company announced the development of a next-gen platform and two new car models.
Tesla has offered to set up an electric vehicle manufacturing plant in India for domestic sales and exports, according to a Reuters source. In the past, the relationship between the country and the company was suspended due to the fact they could not find a compromise on the issue of Tesla entering the market. India refused the company's request last year for a tax cut on car imports that could be as high as 100%. India has pushed for Tesla to produce cars locally, but the company wanted to test the market with imports first.
It was revealed on Tuesday that a group of Tesla senior executives would be visiting India this week. Reportedly, they planned to meet with federal government officials. The leaders were scheduled to meet with government officials, including from Prime Minister Narendra Modi's office.
Reportedly, so far in talks, Tesla has not discussed lower import taxes with Indian officials. The company instead has offered to set up a new factory, although without specifying the location or amount of investment.
In March, Tesla announced it had developed new car models based on a new generation platform. They will be produced according to a new method and using new technologies. All this will make them affordable to a wider range of consumers. Initially, Tesla planned to build a factory to produce new cars in Mexico and will start this soon.
Since the new model will be more affordable than the existing ones, it could be a really big hit in a market like India. Tesla's development continues, which means it makes sense for the company to build a new factory in the country in order to supply the local market and export to other countries with affordable Tesla car models.
© 2023, Eva Fox | Tesmanian. All rights reserved.
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Article edited by @SmokeyShorts; follow him on Twitter
About the Author
Eva Fox
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.
