Reports are calling it very promising that Tesla may come back to India in the coming months with an agreement to move forward. Reportedly, Tesla will be agreeing to work to establish a vendor base in India as part of the plan to suit both sides. Initially, the US EV maker will focus on establishing a presence and beginning domestic assembly.

India has been a tough one for Tesla. The company and CEO Elon Musk have been talking about wanting to expand there for years, and it just makes sense. However, with Tesla's huge success and everyone wanting a piece of the pie, it makes negotiations more difficult. Tesla wants tax breaks for imported EVs and India won't allow it.

Nonetheless, by 2021, Tesla was set to launch in India, or so it seemed. The company already went through the homologation process for seven different models and received the official certificates. At least one Model Y was spotted out testing in the country, and the signs went on and on.

Since then, we haven't heard much about Tesla's Indian ventures, but according to a report from Financial Express, Tesla may have already agreed to follow the "vendor base" plan. It wouldn't be a whole lot different than what the automaker already did in China, and look at the success Giga Shanghai is having. The Indian officials shared:

“The government is willing to give time for setting up a domestic vendor base, but Tesla will have to indicate a period by which the duty concessions on components granted to it will come to an end."

Reportedly, Tesla has been asked by Indian officials to put together a plan of what it might look like and submit it in three to six months. The publication's sources suggest Tesla is already willing to move forward.

As Tesla puts its potential plan together, it also has to consider the local supply chain and resources in India, as well as its current and future vendors and suppliers. There are clearly still a whole lot of details to iron out.

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