Tesla has started discussions with the Indian government for an investment proposal to set up a car factory in the country, with an annual capacity of as many as 500,000 electric vehicles, the Times of India reported on Thursday.
The prices for the electric vehicles would start from 2 million rupees ($24,400.66), the report added.
Tesla did not immediately respond to Reuters' request for comment.
The billionaire Elon Musk-led company is also looking at using India as an export base as it plans to ship cars to countries in the Indo-Pacific region, the report said, citing government sources.
In a meeting with Musk last month, Indian Prime Minister Narendra Modi pushed the car maker to make a "significant investment" in the country.
