Tesla, owned by billionaire Elon Musk, will ship a staff to India this month to scout places for a proposed $2 billion to $3 billion (about Rs 16,700 crore-Rs 25,000 crore) electrical automobile plant, UK’s Financial Times reported on Wednesday.

Last month, India decreased import taxes on sure electrical automobiles produced by carmakers that commit to take a position a minimum of $500 million (over Rs 4,150 crore) and begin home manufacturing inside three years.

Tesla’s reported push into India comes at a time when EV demand is slowing and competitors heats up in its primary markets of the U.S. and China, inflicting the EV maker to report a drop in first-quarter deliveries and lacking estimates.

The firm will ship a staff from the United States by late April to check websites for the plant, with a give attention to states which have automotive hubs akin to Maharashtra, Gujarat and Tamil Nadu, the report stated, citing folks accustomed to the matter.

The EV maker’s CEO Elon Musk has been attempting to enter the Indian marketplace for years however New Delhi wished a dedication to native manufacturing.

Tesla officers have been in talks with authorities officers during the last yr, with Musk assembly Prime Minister Narendra Modi in June.

The firm stated in July final yr that it was occupied with constructing a manufacturing unit in India to supply an EV priced at $24,000. It additionally known as for decrease taxes on costlier fashions it needs to promote in India, Reuters has reported.

Tesla’s potential entry into the Indian market could spur additional EV investments and will profit auto components makers primarily based in India, analysts have stated.

(With Inputs From Reuters)