According to reports by the Times of India, Thursday, Tesla (NASDAQ:TSLA) is discussing an investment proposal with the Indian government to set up a factory with an annual capacity to produce about half a million electric vehicles.
According to the report, the vehicles will have a starting price of INR2 million ($24,400.66). This price is over twice as much as India's most affordable EV, the MG Comet, and half a million rupees higher than the Tata Nexon EV, which is currently the best-selling electric car in the country.
Tesla has been eager to enter the Indian market, but the plans were stalled when the government refused to reduce import taxes on their vehicles. The country imposes import taxes of up to 100% on electric vehicles.
CEO Elon Musk held renewed entry talks with Indian officials, including Indian Prime Minister Narendra Modi, back in May about potential incentives being offered for the company to build a manufacturing facility in the country. During the meeting, Prime Minister Modi pushed the carmaker to make a "significant investment" in the country.
This time around, the talks are being led by the Indian commerce and industry ministry, with the hopes to put together a “good deal”. The ministry hopes to maintain a level-playing field as talks now involve both local manufacturing and exports, the local media report added.
Shares of TSLA are up 0.78% in premarket trading on Thursday.