Bloomberg is reporting that Tesla will indeed begin building EVs in India as they target a market of 150 million drivers. Tesla is looking to build their plant just outside of Bangalore where other EV companies have also set-up. India has recently dropped levy taxes on EVs to 5%, in a bid to encourage the adoption of EVs.
However, Tesla faces a number challenges in India. First and foremost is the seeming lack of interest; it has been reported that only around 8,000 drivers would be interested in driving an EV. Another challenge is the lack of charging infrastructure set-up around India. A greater investment from the government or private companies would be needed to mainstream the emerging technology.