Tesla in talks to setup Factory in India

Tesla new proposal to Government of India

Tesla is reportedly back-in talks with the Indian Government and proposed a new factory set-up in India!

Tesla is in talks with the Government of India to set-up a new factory in India after failing to reduce the import taxes on cars last year.

Tesla local manufacturing factory proposal!

Tesla last year were in talks with the Indian Government to reduce the import taxes that is as high as 100% on CBU so that they could import Tesla 3 in India. The Indian Government wanted Tesla to manufacture it’s vehicles in India, but Tesla wanted to first try the Indian Market. However, their attempt in convincing the Government to reduce the import taxes failed and that resulted in Tesla shelving it’s India debut plan in May 2022.

Now, Tesla is back-in talks and has a new proposal, that is to set-up a factory here in India to produce electric cars domestically and export from India to other countries. As per the Reuters article, it reports that the US-based automaker as already had talks with the Indian Government on May 17th. Tesla suggested establishing a factory with no details on the location, and on the investments. There were talks of potentially setting up battery manufacturing plant in India depending on the models.

Tesla’s Senior Executives spoke with the Government for sourcing of components locally, as reported. Moreover, it is reported that Tesla also sought advice on how to avail the PLI (Production Linked Incentive) Scheme but it has so far submitted nothing on the Indian Market.

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