Tesla has started discussions with the Indian government about building one automobile factory in the country, according to The Times of India.
The factory will reportedly be able to produce 500,000 electric vehicles annually at a starting price of 20 lakh rupees (about US$24,360).
“Tesla has come to us with an ambitious plan and we’re confident the move this time will be positive, especially as it includes both local manufacturing and exports,” a source said.
Tesla is also reportedly interested in using India as an export base to ship its cars to other countries in the Indo-Pacific.
The reported discussions came not long after Tesla CEO Elon Musk met with Indian Prime Minister Narendra Modi in the US. At the time of the meetings, Musk said he was a fan of Modi, adding that the prime minister had encouraged Tesla to invest in India.
Before alleged talks between the Indian government and Tesla began, Foxconn — a Taiwanese multinational and one of Apple’s top suppliers — reportedly pulled out of a $19.5 billion joint venture project with Indian organization Vedanta back, which would have created capacities for display and semiconductor production in the state of Gujarat. Foxconn told CNBC that while the decision was an amicable one, the company still believes in India’s semiconductor aspirations.
