Tesla and Govt. of India close in on an agreement

An official announcement could be made during the Vibrant Gujarat Global Summit in January.

Tesla Inc. and the Indian government are close to finalizing an agreement that would enable the US-based EV maker to import its electric cars into the country from next year.

According to a media report, an official announcement could be made during the Vibrant Gujarat Global Summit in January.

Tesla is also looking to set up a factory within the next 2 years. The states of Gujarat, Maharashtra and Tamil Nadu are said to be under consideration as they already have well-established EV ecosystems and export infrastructure.

The report also states that Tesla could commit to an initial investment of around US$2 billion. The company would also increase the purchase of auto parts from India to around US$ 15 billion. The carmaker could also manufacture batteries locally to bring down costs.

Piyush Goyal, Minister of Commerce and Industry, was on a visit to the US to participate in regional trade meetings and to woo investments from EV markers. Reports also suggest that the government could offer tax cuts on imports of completely built units (CBU) of electric vehicles for a period of up to 5 years.

Goyal also visited Tesla’s manufacturing facility in Fremont, California.

Source: ET Auto