Tesla has invested up to $2 billion to build a factory in India, provided that tariffs on 30, 000 cars are reduced.

CTOnews.com, Nov. 25, according to the Economic Times, if the Indian government cuts import tariffs on its cars in the first two years of operation to 15%, Tesla will invest up to US $2 billion (CTOnews.com Note: currently about 14.3 billion yuan) to build a factory in India.

India is working on a new electric car policy to cut import taxes to as low as 15 per cent, compared with 100 per cent for cars priced above $40000 and 70 per cent for the rest, Reuters reported in August.

Indian media ET reported citing unnamed sources that Tesla is willing to invest up to $500m if the government approves a tariff reduction on 12000 vehicles and up to $2 billion if it approves a tariff reduction on 30000 vehicles.

The government is reviewing the feasibility of Tesla's proposal to invest 2 billion US dollars, but hopes Tesla will reduce the number of cars imported at lower tariffs, the Economic Times said.