Tesla representatives will meet with India's commerce minister later this month to discuss building a car factory to produce a new $24,000 electric car, two people familiar with the matter said today. Tesla has expressed interest in building a car factory in India to produce low-cost electric vehicles, the two people said. The model will be sold in the Indian market and will also be exported to other countries.
Later this month, Tesla representatives will meet with Indian government officials, including Commerce Secretary Piyush Goyal, in New Delhi to discuss issues such as establishing an electric vehicle supply chain and allocating land for factories.
In May this year, there was news that Tesla had proposed to build a car manufacturing plant in India, and the cars produced would be sold locally in India and exported to the international market. Earlier this month, there were reports that Tesla was preparing to build a factory in India to produce $24,000 electric vehicles.
Tesla has been coveting the Indian market for a long time. As early as February 2021, Tesla registered a company in India, taking a step towards entering the Indian market. According to estimates at the time, Tesla could enter the Indian market as soon as 2021. However, due to the delay in negotiations between Tesla and the Indian government on tax incentives, Tesla's plan to enter the progress market has been delayed to this day.
The talks will be the highest-level discussions between Tesla and the Indian government since June. Last month, Tesla CEO Elon Musk met with Indian Prime Minister Narendra Modi and expressed plans to make major investments in India.
If the news is true, the $24,000 electric car will be 25% cheaper than Tesla’s currently lowest-priced Model 3 model. Currently, the Model 3 sells for just over $32,200.
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