Tesla has expressed interest in establishing a manufacturing base in the country to produce low-cost vehicles for the local market and exports.
Representatives of American electric vehicle maker Tesla are set to meet Indian commerce minister Piyush Goyal this month to discuss the company’s plans to establish its factory in the country, media outlet Reuters reported on Monday. The factory will produce an all-new Tesla electric vehicle priced at around $24,000.
The Elon Musk-led company has expressed interest in establishing a manufacturing base in the country to produce low-cost Tesla cars for the local market as well as for exports. The company’s $24,000 EV is also reported to be approximately 25% cheaper than the company’s current lowest-priced offering, the Model 3 sedan. Tesla Model 3 is priced at just over $32,200 in China.
In addition, Tesla representatives’ discussions with Minister Goyal will revolve around setting up an EV supply chain and discussing land allotment for a factory. This meeting is considered a significant step in the discussions between the American automaker and the Indian government, marking the highest-level discussion since Musk’s meeting with Indian Prime Minister Narendra Modi last month where the automaker’s CEO said he is confident that his automobile company will make a debut in the country soon.
Musk also said that the automaker will make a debut in the country “as soon as humanly possible” and added that “India has more promise than any large country in the world.” The Tesla chief then said that he is hopeful that they will be able to “announce something in the not too distant future.”
Meanwhile, this is not the first time the American electric vehicle company is discussing its plans to expand its foot in India. In the past, Elon Musk has shown enthusiasm for bringing Tesla vehicles to India and acknowledged that the EV maker was thinking about opening a factory in the country last year.
However, in May last year, the company said to put a hold on its expansion plans in the country after it failed to secure lower import taxes from the government. Apart from seeking lower taxes, Tesla also demanded to first test the demand in the country by selling its cars imported from its existing production hubs in the U.S. and China but the discussions ended in a deadlock.
