New Delhi, May 18 (KNN) Tesla Inc on Wednesday proposed the Indian government for setting up of EV factory in India to manufacture cars for domestic sale and export, reported Reuters.

A source with direct knowledge of the matter told Reuters about this development.

Last year the central government had refused to agree to Tesla's request to lower the import tax on cars, which can reach as much as 100 per cent.

India wanted the carmaker to build vehicles locally but Tesla wanted to test the market first with imports and the talks ended in deadlock.

In its latest proposal Tesla however did not discuss lower import taxes with Indian officials.

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.  (KNN Bureau)