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 percent. 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.
Making cars locally aligns with Indian Prime Minister
Narendra Modi's pitch to attract companies with his "Make in India"
campaign, especially as companies look to diversify their supply chains beyond
China.
Senior Tesla executives are in India this week to meet the
government to discuss local sourcing of parts and other issues, Reuters
reported on Tuesday.
Tesla met officials from Modi's office and other ministries
on Wednesday, said the person and another source familiar with the matter.
Tesla did not respond to Reuters' request for comment.
The electric carmaker's renewed interest in India comes
nearly a year after it put on hold plans to sell cars in the country after
failing to secure lower import taxes, which its CEO Elon Musk said are among
the highest in the world.
Tesla had hired a local team and began a search for showroom
space, but that was also abandoned last year.
The meeting comes weeks ahead of Modi's visit to the United
States in June. © Reuters