India Inches Closer To Seal Deal With Tesla To Import EVs, Set Up Factory: Report

India is gradually inching closer to seal a deal with US-based EV maker Tesla Inc. that would allow the company to ship its vehicles to the country from next year and set up a factory within two years, citing sources privy to the development, Bloomberg reported. According to the report, an announcement could come at the Vibrant Gujarat Global Summit in January, a source told the news agency. Gujarat, Maharashtra, and Tamil Nadu are under the radar as they already have well-established ecosystems for electric vehicles and exports, another person said.

Elon Musk-owned electric carmaker would commit an initial minimum investment in any plant of around $2 billion and would look to increase purchases of auto parts from India to as much as $15 billion, one of the sources said, while adding Tesla would also seek to make some batteries in India to bring down costs. However, no final call has been made and the plans could also change, as per sources.

Musk, Tesla’s CEO, in June had said that the firm plans to make a “significant investment” in India and he intends to visit in 2024. Representatives from India’s Ministry of Heavy Industries, which oversees the automobile sector, and the ministries of finance, and commerce and industry, didn’t respond to Bloomberg’s requests for comment.