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Tesla executives recently met with the government to explore setting up the company’s supply chain in India, including auto parts and electronics chain, The Economic Times reported on Thursday.

The report added that the company has shown interest in bringing its supply chain to India, but the government has asked it to assess existing suppliers in the country.

“These are initial talks, so we are hopeful of making some headway,” ET reported a senior official as saying.

Tesla also plans to set up a car factory in India with an annual capacity of five lakh EV cars, which would be priced at Rs 20 lakh, according to the Times of India.

YourStory was not able to independently verify these reports.

The Ministry of Commerce and Industry is leading talks with Tesla’s Elon Musk, who recently met with Prime Minister Narendra Modi during his visit to the US last month.

Musk said PM Modi had urged him to set up Tesla in India, which the former had been contemplating for a while.

“We are just trying to figure out the right timing… I am confident that Tesla will be in India and will do so as soon as humanly possible,” Musk said at the time.

Tesla is also discussing the structure of SOPs and tax breaks it would get if it brought its manufacturing to India.