India nears deal with Tesla on EV imports and new gigafactory, Bloomberg reports

Asian Tech Press (Nov 21) -- India is close to a deal with Tesla Inc. on importing electric cars and building a new gigafactory, according to Bloomberg.

India is nearing a deal with Tesla that would allow it to ship its electric cars to India starting next year, and to build a factory within two years, Bloomberg reported Tuesday, citing sources.

Once the two sides finalize this partnership, it will be Tesla's sixth car manufacturing plant worldwide.

The two sides are likely to make the announcement at the Vibrant Gujarat summit in January next year, one of the people familiar with the matter said.

In terms of a factory site, Gujarat, the home state of Indian Prime Minister Narendra Modi, Maharashtra and Tamil Nadu are under consideration as they already have well-established ecosystems for electric vehicles and exports, another person said.

Tesla will make an initial minimum investment of about $2 billion in a gigafactory, and is looking to buy up to $15 billion in auto parts from India.

In addition, the U.S. company will also look to manufacture some batteries in India to reduce costs.

However, there could be uncertainties as India and Tesla have yet to make a final decision on the investment plan.

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