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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%. India insisted that Tesla manufacture vehicles locally but Tesla wanted to test the market first with imports. The talks ended in a deadlock.
Tesla had hired a local team and began a search for showroom space, but that was also abandoned last year.
According to the source, Tesla did not discuss lower import taxes with Indian officials. The EV maker instead proposed setting up a new factory, although without specifying a location or investment.
Senior Tesla executives are in India this week. Tesla met officials from Modi’s office and other ministries on Wednesday, said the person and another source familiar with the matter.
Shares of TSLA are up 3.59% in early trading on Wednesday.
