Tesla has proposed setting up a factory in India to build electric cars for domestic sales and exports, which as senior executives discussed the plan for local sourcing of parts with government officials on 17 May, 2023, during their visit to India this week.

The electric carmaker has shown renewed interest in India, after its efforts to secure lower import taxes did not gain success over a year-long period.

The local sourcing concept aims to attract manufacturers towards ‘Make in India’ campaign, especially as companies look to diversify their supply chains to an alternative destination, away from China.