NEW DELHI – Tesla representatives are set to meet India’s commerce minister this month to discuss plans to build a factory to produce what the company has described as a new $24,000 car, a person with direct knowledge of the matter told Reuters.
Tesla has expressed an interest in building a factory in India to produce low-cost EVs for the local market and for export, the person said, adding that the company had indicated the factory would be for the new vehicle.
The meeting with the commerce minister would be the highest level discussions between Tesla and the Indian government since June when Elon Musk met India’s Prime Minister Narendra Modi and said he intended to make a significant investment in the country.
The 2 million rupee ($24,000) EV Tesla representatives were said to have described in discussions about an Indian plant would be 25 percent cheaper than its lowest priced offering, the Model 3 sedan, selling for a bit more than $32,200 in China.
The Times of India reported the $24,000 target price for the new Tesla earlier this month.
Tesla did not immediately respond to a request for comment.
Reuters reported in May that Tesla executives visited India and held talks with officials about establishing a manufacturing base for cars and batteries.
Discussions with Indian government officials in New Delhi are scheduled to resume this month, according to two people with knowledge of the talks who asked not to be named because the discussions remain private.
As part of that, Tesla representatives are set to meet Indian commerce minister Piyush Goyal, the first person said, and discussions are expected to center around setting up an EV supply chain and discussing land allotment for a factory.
The commerce ministry did not respond to a request for comment.