Tesla is reportedly accelerating plans to set up a manufacturing base in India, with company officials set to meet agency heads and top government officials soon.

What Happened? Senior executives from the electric car maker on Thursday met with Nivruti Rai, the newly appointed CEO of Invest India, which assists global investors to invest and operate in India, Economic Times reported, citing sources. Further meetings with commerce and industry minister Piyush Goyal are also on the agenda, the sources added.

While the details of the recent meeting with Rai remain undisclosed, it follows a reported virtual meeting between Goyal and Tesla CEO Elon Musk earlier this month.

Multiple ministries, including the Ministry of Commerce and Industry and the Ministry of Electronics and Information Technology (MeitY), have reportedly been involved in discussions regarding Tesla’s proposals to set up car and battery manufacturing facilities in India. These talks have gained momentum since Musk’s meeting with Prime Minister Narendra Modi in the US last month.

Tesla has been eager to extend its reach beyond China to India and is exploring the possibility of setting up its auto parts and electronics chain in the latter. Possible incentives and tax breaks have also been part of the discussions.

The Indian government has encouraged Tesla to assess the existing domestic auto components supply chain, but the company wants to establish its own supply chain ecosystem in India. Tesla has been interested in selling low-cost cars in the Indian market but has reportedly faced challenges with the government’s stand against lowering import duties.

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