Electric vehicle giant Tesla Inc. has engaged in discussions with Indian government officials this week, expressing its interest in participating in domestic incentives related to car and battery manufacturing, according to a confidential source familiar with the matter. The source revealed that Tesla proposed the establishment of a factory in India for the production of electric vehicles (EVs) and explored plans for local manufacturing of EV batteries.
This development comes after previous negotiations between Tesla and India reached an impasse last year, primarily due to the carmaker’s request to reduce the import tax on vehicles, which can reach up to 100 percent. While India insisted on local vehicle production, Tesla sought to initially test the market with imports.
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The discussions with the Indian government also touched upon the subject of import taxes on cars, but the primary focus was on understanding local policies and incentives necessary for setting up a new factory, the source stated. They preferred to remain anonymous as the talks were of a confidential nature.
Tesla‘s exploration of domestic incentives and local manufacturing in India indicates the company’s growing interest in expanding its presence in one of the world’s largest automobile markets. The discussions signify a potential breakthrough in the deadlock that hindered Tesla’s entry into the Indian market previously, suggesting a positive outlook for future collaborations between Tesla and the Indian government.
Source: Reuters
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