Tesla's plan to set up an EV factory in India is gaining momentum

Tesla EVs in India could come for a price of ₹20 lakh

The grapevine is abuzz with talks that Tesla is chatting it up with the government about setting up a factory here in India and cranking out around 500,000 electric vehicles every year.

Scoop is Tesla's electric vehicles in India might come with a starting price tag of ₹20 lakh. Just to put it in perspective, it's more than double the cost of India's most affordable electric car, the MG Comet. And, it's half a million rupees more than the Tata Nexon EV. Rumours are rife that Elon Musk is even thinking about using India as a base to ship those snazzy cars to countries in the Indo-Pacific region.

Last year, Tesla hit a roadblock in their quest to conquer the Indian market as the government wasn't too keen on lowering those import taxes on their vehicles. So it made it difficult for Tesla to make its grand entrance into the Indian market. At present, India imposes import taxes as high as 100% percent on electric vehicles.

Now, Tesla is changing gears and giving it another shot. Reports suggest that they're exploring the possibility of snagging some sweet incentives from the government, not just for their cars but also for setting up battery manufacturing.

According to media reports, the Indian Commerce and Industry Ministry is now leading the discussions with Tesla. Their aim, apparently, is to strike a deal that's a win-win for both parties while ensuring fair competition between local manufacturing and exports. So, the ministry is putting in the effort to assemble a "good deal" that considers all the different aspects of Tesla's involvement in the Indian market.