India and Tesla are nearing an agreement to import EVs and establish a plant

India is close to finalising an agreement with American automaker Tesla Inc. that would allow the company to import its electric vehicles into the nation starting next year and establish a manufacturing plant within two years.

According to one of the sources, the formal announcement is anticipated to be made during the Vibrant Gujarat Global Summit in January. Because of their developed infrastructure, the states of Gujarat, Maharashtra, and Tamil Nadu are being considered for this project.

According to the source, Tesla intends to make an initial investment of about $2 billion in a new plant located in India. They also intend to spend up to $15 billion on auto parts from India. To cut expenses, the business is thinking of producing certain batteries in India.

These plans, however, are not set in stone and may alter. Elon Musk, the CEO of Tesla, stated in June that the company expects to make a “significant investment” in India, and he intends to travel there in 2024. Regarding the same, no formal statement has been made thus far.

Also Read: A Delhi doctor loses Rs 5 lakh in an internet fraud and requests a refund from the taxi company

Just 1.3% of all passenger cars sold in 2017 were electric. This is due to the high cost of electric vehicles and the dearth of charging infrastructure.Because of the high taxes, Tesla does not yet import automobiles directly into India. However, the initial locally produced vehicles may only cost $20,000 when they go on sale.