Tesla Proposes New EV Plant In India: ReportThe 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 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, according to a Reuters report, citing a source with direct knowledge of the matter.

For years, Elon Musk said that Tesla's launch in India was imminent, but strong import tariffs have made it difficult. Nonetheless, the automaker has had some indications of preparing for a launch over the last year. 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.

The government has maintained high import duties on EVs in order to encourage local production, but so far, it has apparently resulted in preventing automakers from importing popular EVs produced outside the country, including in China. Local sourcing aligns with Modi's pitch to attract manufacturers with his "Make in India" campaign, especially as companies look to diversify their supply chains beyond China.

Over the last few days, there were local reports in India that Tesla sent executives in the country to meet with officials. Recently, Reuters reported that Tesla has proposed a new factory in India to mark a change in strategy with starting sales in a market by first establishing production.