Tesla in talks to set up car factory in India, know starting price of EV

Months after having a fruitful discussion with Prime Minister Narendra Modi, now it is being reported that Billionaire Elon Musk-led Tesla has started discussions with the Indian government for an investment proposal to set up a car factory in the country.

 

 

The talks are being led by the Commerce and Industry Ministry and the government was hopeful of putting together a 'good deal' while maintaining a level playing field.

 

 

As per the reports, the factory would have an annual production capacity of up to 500,000 electric vehicles. The prices for electric vehicles would start from Rs. 20 lakh.

 

 

Tesla is keen on building its own supply chain ecosystem in India, despite the government's request for the company to evaluate the existing auto components supply chain within the country.

 

For unreserved, last year, talks stalled after the Indian government refused to agree to a request from Tesla seeking lower import taxes on cars, which can be as much as 100%. India was keen for Tesla to manufacture vehicles locally.

 

 

Tesla, which has a significant presence in China, including factories - is also looking at using India as an export base as the company plans to export cars to countries in the Indo-Pacific region.

 

These discussions between Tesla and the Indian government reflect the growing interest of international automakers in India's electric vehicle market. India has been actively promoting the adoption of electric vehicles to reduce pollution and dependence on fossil fuels. The government has implemented various initiatives and incentives to attract investments in the electric vehicle sector and develop the necessary infrastructure