As per a media source, Tesla Inc has put forward a proposal of setting up a manufacturing facility in India to build electric cars for domestic sale and export to the government officials.
Tesla's new proposal comes after India turned down the carmaker’s request to lower the import tax on cars, which can reach as much as 100%. The Indian government wants Tesla to manufacture vehicles in the country but Tesla wanted to test the market first with imports and the talks ended in deadlock.
While Tesla did not discuss lower import taxes with Indian officials, it proposed setting up a new factory, albeit without specifying a location or investment, said the source, who declined to be named as the talks were private.
The media source also reported that Senior executives of Tesla are in India this week to discuss local sourcing of parts and other issues with the government.
Tesla executives have already met officials from the Prime Minister’s office and other ministries, as per sources.
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.
The meeting comes weeks ahead of Modi's visit to the United States in June.
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