Tesla has made a new proposal to establish a factory in India despite having previously abandoned plans to launch in the market following a tariff dispute with the Indian government.
An unnamed source claims that Tesla recently informed government officials of a plan to build a factory for both domestic sales and exports. Few other details are known about the plans but Auto News reports that senior executives from Tesla are in India this week and meeting with government officials to discuss the local sourcing of parts.
Indeed, it is understood that Tesla spoke with officials from the office of Indian Prime Minister Narendra Modi earlier this week but has not yet specified an investment amount nor where the factory could be located.
Read: Tesla Is Putting Its Plan To Sell EVs In India On Hold
Tesla had put its plans to enter the Indian market on hold 12 months ago. It was hoping to be granted approval to sell EVs imported from its facilities in the United States and China. Tesla and chief executive Elon Musk pushed for the brand’s models not to be hit with local tariffs set as high as 100% for imported vehicles but the Indian government refused to budge, ending talks. India has been pushing Tesla to establish a local factory in the country and if these latest reports are true, this could be the route the carmaker takes.
India currently ranks as the world’s third-largest car market with some 4.4 million new light vehicles sold there in 2022, placing it only behind the United States with 13.8 million sales and China with 24.8 million sales. Tesla clearly thinks that India has a lot of potential, even though its current EV market remains small.
