Tesla to discuss factory plan for new $24,000 car with India commerce minister -source

investing.com:

By Aditi Shah and Aditya Kalra

NEW DELHI (Reuters) — Tesla (NASDAQ:TSLA) 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 an all-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 that would produce low-cost electric vehicles (EVs) for the local market and for export, the person said, adding that the company had indicated that it would be for the new vehicle.

The discussions represent a sharp reversal for the company after efforts last year to reduce import taxes on EVs shipped to India were scuppered by calls from government officials to commit to making cars locally.

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 a potential Indian plant would be 25% cheaper than its current lowest priced offering, the Model 3 sedan which sells for the equivalent of just over $32,200 in China.

The $24,000 target price for the new Tesla vehicle was reported earlier this month by The Times of India newspaper.

Tesla did not immediately respond to a request for comment.

Electric vehicles currently account for less than 2% of total vehicle sales in India, now the world’s third largest auto market.

Reuters reported in May that Tesla executives visited India and held talks with officials on establishing a manufacturing base for cars and batteries in