Despite being a major electric carmaker globally, Tesla lacks an affordable car lineup suitable for the Indian market.

Tesla is reportedly recruiting and scouting showroom locations in the country, following a meeting between Prime Minister Modi and Elon Musk earlier this month.

The United States is pushing India to eliminate taxes on imported cars under a new trade deal. Currently, the country charges extremely high taxes on imported vehicles, sometimes going up to 110%. This has made it difficult for foreign carmakers to sell their vehicles in the country.

President Donald Trump's administration wants India to cut tariffs on car imports as part of a potential trade agreement between the two countries, but New Delhi is reluctant to immediately eliminate such duties,