Hyderabad: Tesla Inc has proposed setting up a factory in India to build electric cars for domestic sale and export, the carmaker told government officials on Wednesday, news agency Reuters said quoting a source with direct knowledge of the matter.
The proposal comes after India refused to agree to Tesla's request last year to lower the import tax on cars, which can reach as much as 100 per cent. India wanted the carmaker to build vehicles locally but Tesla wanted to test the market first with imports and the talks ended in deadlock.
While Tesla did not discuss lower import taxes with Indian officials, it proposed setting up a new factory, albeit without specifying a location or investment, said the source, who declined to be named as the talks were private.
