Tesla Inc has proposed establishing a factory in India to manufacture electric vehicles for domestic and export markets, according to a source with direct knowledge of the matter.

According to sources, the company did not discuss lowering import taxes on electric vehicles.

According to sources, senior Tesla executives are in India this week to meet with the government to discuss local sourcing of parts and other issues.

Nearly a year after postponing its plans to sell vehicles there due to inability to negotiate lower import taxes—which CEO Elon Musk claimed to be among the highest in the world—the electric carmaker has recently expressed a renewed interest in the market.

Local sourcing is in line with Modi's "Make in India" campaign pitch to manufacturers, especially as businesses look to expand their supply chains beyond China.