Tesla Inc is “serious” about its plans to establish a manufacturing base in India, according to the country’s Deputy Minister for Technology, Rajeev Chandrasekhar. The Elon Musk led U.S. automaker held talks with Indian officials this week on various topics including incentives for car and battery manufacturing.
Chandrasekhar said in an interview with Reuters that the government of India is working together to make Tesla’s ambitions and investment objectives in India a success. Tesla proposed setting up a factory in India to build electric vehicles (EVs) and is also looking at manufacturing EV batteries.
The discussions in India represent a shift in stance for Tesla, which said late last year it was focused on seeking lower import taxes on cars, which can be as high as 100%. Talks became deadlocked as the government is keen for Tesla to make cars locally, while the carmaker said it wanted to export to India first so that it could test demand.
Outside the United States, Tesla has a plant in Shanghai – its largest factory worldwide – and one in Brandenburg, Germany. With India’s growing demand for EVs, Tesla’s entry into the market could be a game-changer.