In May, Tesla executives held talks with Indian officials on establishing a manufacturing base for cars and batteries in India.
Read More: High taxes, cost-cutting formula: How Pakistan is dealing with economic crisis?
New Delhi: The representatives of Elon Musk-led Tesla will soon meet Union Minister for Commerce and Industry Piyush Goyal this month to discuss plans to build a factory to produce what the company has described as an all-new $24,000 car, a person with direct knowledge of the matter told Reuters.
The company has been looking for an entry to India, however, the government told the carmaker that there will be no concession given for import taxes. Now, Tesla has expressed an interest in building a factory in India that would produce low-cost electric vehicles (EVs) for the local market and for export, the person said in the Reuters report, adding that the company had indicated that it would be for the new vehicle.
The meeting with the commerce minister would be the highest level discussions between Tesla and the Indian government since June when Elon Musk met India’s Prime Minister Narendra Modi and said he intended to make a significant investment in the country.
The 2 million rupee ($24,000) EV Tesla representatives were said to have described in discussions about a potential Indian plant would be 25 per cent cheaper than its current lowest priced offering, the Model 3 sedan which sells for the equivalent of just over $32,200 in China.
Read More: ‘Deeply Concerned’: US After China Gives USD 700 Million Loan To Pakistan
The $24,000 target price for the new Tesla vehicle was reported earlier this month by The Times of India newspaper.
Electric vehicles currently account for less than 2 per cent of total vehicle sales in India, now the world’s third largest auto market.
In May, Tesla executives held talks with Indian officials on establishing a manufacturing base for cars and batteries in India.
The meeting with Union Minister Piyush Goyal is expected to centre around setting up an EV supply chain and discussing land allotment for a factory.
Tesla has aggressively discounted its existing models since the start of the year while Musk has repeatedly said its long-term success will hinge on bringing down the cost of EVs sharply.
Tesla has said its next-generation vehicle platform will slash production costs by 50% and that multiple models – including an automated “robotaxi” – could be built from it, without detailing what those future models will be or their pricing.
Read More:– Digital debt collection sector outlook and benefits for customers
A Tesla plant under construction in Mexico will produce vehicles on that lower-cost, high-volume platform, which the company has said it said it will take to other factories as well.
Tesla currently produces EVs in California and Texas. Outside North America, it has plants in Berlin and Shanghai.
The Shanghai plant is Tesla’s largest, accounting for almost 40% of the automaker’s global capacity. Plans to add additional capacity there are pending regulatory approval.
