Tesla is set to discuss a plan to build a factory in India with a government official before the end of the month, according to a report. Negotiations at the highest state level are the next step taken to enter the local market.
Tesla representatives are set to meet with India's Commerce Minister this month, Reuters said, citing a person with direct knowledge of the matter. They will be held to discuss plans to build a car manufacturing factory for a new vehicle platform, which should have an estimated cost of around $25,000 per unit.
Tesla has long shown interest in entering the Indian market but has been unable to find a compromise with the local government. Earlier this year, the company expressed interest in building a factory in India. This came after Tesla unveiled plans to produce an affordable car. Now, with a product that can actually be made affordable to the local population, it makes a lot of sense for the company to build a factory in the country. In addition to the fact that such a car can be sold domestically, India can also become an export hub for its delivery to nearby regions, including even delivery to Europe.
The meeting with the Minister of Commerce will be a high-level talk between Tesla and the Government of India. Last month, Elon Musk met Indian Prime Minister Narendra Modi in the US. At the meeting, the Tesla CEO stated he intends to make significant investments in India.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.