Tesla representatives have scheduled a meeting with India’s commerce minister this month to discuss plans to build a factory.
The plant would produce a cheap – by Tesla standards – new EV priced at US$24,000 targeted at domestic and export markets, according to a Reuters source.
This would be a shift in Tesla strategy after the company met resistance last year asking for lower import taxes on imported EVs. Government officials insisted on a commitment to local manufacturing, prompting the automaker to reconsider its approach.
Tesla CEO Elon Musk met in June with Indian prime minister Narendra Modi saying he’d like to make substantial investment.
Reuters said the proposed EV would be 25% cheaper than Tesla’s current lowest price Model 3 sedan which sells for $32,200 in China.
Earlier this year, Tesla executives visited India for talks with officials about establishing car and battery making.
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By GlobalDataThe next talks round will cover an EV supply chain and land for the factory.
Neither Tesla nor the Indian commerce ministry would comment to Reuters.
Other media reports have suggested Tesla wants to export the ‘cheap’ Indian EV to other countries.
