Tesla in talks with Indian govt to produce electric cars starting INR2m

Elon Musk's Tesla has begun discussions with the Indian government for an investment proposal to open a factory with an annual capacity to produce half a million electric vehicles. 

According to Times of India, the automotive company is also looking at using India as an export base to ship cars to countries in the Indo-Pacific region. 

The starting price for the vehicles will be INR2 million which is double the price of India's cheapest EV, MG Comet and half a million costlier than the top-selling electric car Tata Nexon EV.

"Tesla has come to us with an ambitious plan, and we are confident that the movement will be positive this time around, especially as it involves both local manufacturing and exports," a source said. 

The talks are being led by the country's commerce and industry ministries as the government hopes to strike a "good deal" while maintaining a level playing field.

In May, executives of Tesla visited India and held talks with Indian bureaucrats and ministers on establishing a manufacturing base for cars and batteries in India. 

 In a meeting with Prime Minister Narendra Modi last month, Musk dropped clues that his electric carmaking company Tesla might unveil its investment plans for India.

According to Reuters, Musk was to brief Modi “on plans to set up a manufacturing base in India”.

Musk, who also owns Twitter since last year, said that “India has strong potential for a sustainable energy future including solar power, stationary battery packs and electric vehicles.”

51-year-old CEO also expressed his intentions to “bring SpaceX's Starlink satellite internet service to India.”