Reuters has learnt from a person in the know that in today’s discussions with Indian government officials, US Automaker Tesla has suggested establishing a factory in the country, to make electric cars for export as well as domestic sale.

The proposition comes after the country refused to accept the automaker’s request to reduce import tax on cars last year, which can go as high as 100 percent. India wanted Tesla to build cars locally, whereas the auto firm wanted to test the waters first with imports, and the discussions ended in an impasse, Reuters reported.

Whereas the auto firm did not broach the subject of reduction of import taxes with officials today, it suggested establishing a factory, without offering details on either the location or the investment, the person told Reuters on condition of anonymity.

Senior executives from the company are in India to talk to the government on local sourcing of components among other matters, the newswire reported earlier.

Tesla met officials from Modi's office and other ministries on Wednesday, said the person and another source familiar with the matter, to the newswire. 

Two people in the know told Reuters that Tesla met up with government officials today. Tesla did not accede to the newswire’s request for a statement.