James Glover/Reuters
Tesla CEO Elon Musk.
Tesla CEO Elon Musk said he's in talks with India's government to sell electric cars in the country, which is currently the $4 in the world.
Musk said on $4 Thursday that he is currently negotiating a relief on import penalties until Tesla can build a local factory. This isn't the first time Musk has announced he intends to enter the Indian market - $4 in February he was hoping to launch in the country this summer.
India could become one of the most important markets for Tesla given the country's massive population size and focus on reducing emissions.
Vehicle adoption in India is expected to grow rapidly. At its current pace, the country is set to become the third-largest auto market in the world by 2020, according to a May $4 by the India Brand Equity Foundation, the Indian government's resource center for economic information.
India's passenger vehicle segment witnessed the most growth in the 2016 fiscal year, but two-wheelers still secure the most widespread adoption.
But some foreign automakers have so far struggled to increase sales in India, driven partially by a crackdown on diesel vehicles. General Motors put its $1 billion planned investment in India on hold last summer due to poor sales and the regulatory environment, $4 reported at the time.
The country is looking to promote electric and hybrid vehicle sales through its $4. The initiative aims to have 6-7 million electric and hybrid vehicles on the road by 2020 by offering manufacturing and purchasing incentives.
As Musk explores India, Tesla is also looking to further $4, the largest in the world, as the government pushes battery-powered vehicle adoption.
Get the latest Tesla stock pricehere.>$4
In discussions with the government of India requesting temporary relief on import penalties/restrictions until a local factory is built
- Elon Musk (@elonmusk) $4