Renowned electric vehicle manufacturer, Tesla, is currently in conversation with the Indian government, aiming to establish a car factory in the country, as reported by the Times of India. The proposed facility could potentially manufacture up to 500,000 electric vehicles annually, with prices starting from a modest $25,000.

Tesla’s Export Hub Ambitions

Insiders within the Indian government have revealed that Tesla’s ambitions extend beyond domestic production. The company, under the leadership of billionaire Elon Musk, has also expressed interest in considering India as a strategic export hub. This move would facilitate the supply of Tesla vehicles to countries in the Indo-Pacific region.

During a recent meeting between Tesla CEO Elon Musk and Indian Prime Minister Narendra Modi, the prime minister urged the carmaker to make a “significant investment” in the country.

A Shift in Tesla’s Strategy

This development comes as a shift in Tesla’s strategy. Previous discussions had hit a roadblock after the Indian government rejected Tesla’s appeal for lower import taxes on cars – a staggering amount that can reach up to 100%. While the Indian government expressed its aspirations for Tesla to manufacture vehicles domestically, the company initially favored exporting cars to assess market demand.