Tesla Proposes New Factory, Resumes Talks to Enter Indian Market

Tesla is reportedly considering building a factory in India to manufacture electric cars for both domestic and export markets. The move comes after India refused to lower import taxes on cars, which can be up to 100%, last year. Tesla wanted to test the market first with imports, but talks ended in deadlock. However, the proposal for a new factory was made without specifying the location or investment. Senior Tesla executives are currently in India to discuss local sourcing of parts and other issues with government officials. Building cars locally would align with India’s “Make in India” campaign, which aims to attract companies as they look to diversify their supply chains beyond China. The meeting with Tesla also comes ahead of Indian Prime Minister Narendra Modi’s visit to the US in June.