The Indian government is reportedly on the verge of reaching an agreement with electric vehicle (EV) giant Tesla to allow the Elon Musk-led company to ship cars to the country from next year.
The agreement is also expected to allow Tesla to set up a factory in the country within two years, Bloomberg reported.
The final announcement is likely to be made at the upcoming Vibrant Gujarat Global Summit in January 2024.
Gujarat, Maharashtra and Tamil Nadu are the states in the race for getting the Tesla plant as they already have an ecosystem for EVs and exports, the report said.
The electric car maker is expected to commit an investment of at least $2 Bn for the plant and increase the purchase of auto parts from the country to as much as $15 Bn, it added. The company is also considering manufacturing batteries in India to bring down costs.
Earlier, it was reported that Tesla was considering setting up a battery storage facility in India, besides the car manufacturing plant.
After years of standoff with the Indian government over the import duties, Tesla has had a change of heart and is now looking to enter the world’s most populous country with its cars. The company is said to be looking to manufacture low-cost electric cars in the sub-$24,000 price range in the country.
Meanwhile, the Indian government also seems to be keen for Tesla to set up its plant to boost the country’s image as a global manufacturing hub.
Earlier this month, it was reported that the Indian government is speeding up the process of Tesla’s entry into India and is looking to provide all the necessary clearances by January. The matter was discussed in a meeting conducted by the Prime Minister’s Office.
Meanwhile, union commerce minister Piyush Goyal visited Tesla’s manufacturing facility in California earlier this month. Following this, Goyal said that Tesla plans to increase the import of auto parts from India.
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