BENGALURU: Tesla is discussing an investment proposal with the Indian government to set up a factory with an annual capacity to produce about half a million electric vehicles, the Times of India reported on Thursday, citing government sources.

The company, led by billionaire Elon Musk, is also looking at using India as an export base to ship cars to countries in the Indo-Pacific region, the report said.

The starting price for the vehicles will be 2 million rupees ($24,400.66), the report added, which is more than double of India’s cheapest EV, MG Comet, and half a million costlier than Tata Nexon EV, the top-selling electric car in the country.

Last year, Tesla’s India entry plans were stalled after the country’s government refused to lower import taxes on its cars.