Indian Prime Minister Narendra Modi and Elon Musk at the Tesla factory. Photo: AFP A deal to import Tesla electric cars and set up a manufacturing plant in India is under discussion. According to a report by US broadcaster Bloomberg, the talks between India and Tesla have progressed positively in this regard. Bloomberg reported this information citing a source familiar with the matter.
A formal announcement in this regard may come at the Vibrant Gujarat Global Summit to be held in January next year, a source told Bloomberg on condition of anonymity. Gujarat, Maharashtra, Tamil Nadu are being considered initially for Tesla’s electric vehicle manufacturing plant.
Tesla will initially invest $2 billion to set up a car manufacturing plant in India, the source said. Besides, the source also said that the parts of these cars will be bought from the country. In this case, Tesla will buy parts worth an average of 15 billion dollars every year. Apart from this, Tesla will also manufacture electric vehicle batteries in India to reduce production costs.
The source said, no final decision has been taken in this regard so far. Tesla’s decision on this matter is subject to change at any time. But in June this year, Tesla CEO Elon Musk said that his company wants to invest a significant amount in India. At that time he also expressed his desire to visit India.
India’s Ministry of Heavy Industries and Tesla have yet to officially comment on the matter.