New Delhi, Nov 21 (KNN) The Indian government is getting closer to finalising an agreement with EV giant Tesla that would allow the US automaker to import its electric vehicles to the country from next year, reported Bloomberg News.

It will also pave the way for a local factory in the next two years and an

official announcement is anticipated at the Vibrant Gujarat Global Summit scheduled for January.

States of Gujarat, Maharashtra, and Tamil Nadu being under consideration due to their well-established ecosystems for electric vehicles and exports, the report added.

As part of the potential agreement, Tesla is expected to commit an initial minimum investment of approximately USD 2 billion for the plant, with plans to escalate purchases of auto parts from India to as much as USD 15 billion.

Additionally, the Elon Musk led-company aims to manufacture some batteries within India to reduce costs, Bloomberg sources disclosed.

While no final decision has been reached, these plans are subject to change, and Tesla CEO Elon Musk had previously stated in June that the company intends to make a “significant investment” in India, with plans for a visit in 2024.

Tesla Inc. is on the brink of making substantial inroads into India, a country experiencing a surge in demand for electric vehicles (EVs).

(KNN Bureau)