Tesla proposes new EV plant in India for domestic sales, exports -source


By Aditya Kalra

NEW DELHI (Reuters) -Tesla Inc has proposed setting up a factory in India to build electric cars for domestic sale and export, the carmaker told government officials on Wednesday, according to a source with direct knowledge of the matter.

The company did not discuss lowering import tax on electric cars, the person told Reuters.

Senior Tesla executives are in India this week to meet the government to discuss local sourcing of parts and other issues, Reuters reported on Tuesday.

Tesla did not immediately respond to Reuters’ request for comment.


The electric carmaker’s renewed interest in India comes nearly a year after it put on hold plans to sell cars in the country after failing to secure lower import taxes, which its CEO Elon Musk said are among the highest in the world.

Local sourcing aligns with Modi’s pitch to attract manufacturers with his “Make in India” campaign, especially as companies look to diversify their supply chains beyond China.

(Additional reporting by Aditi Shah in New Delhi and Varun Vyas in Bengaluru; Editing by Rashmi Aich and Louise Heavens)