Tesla is actively seeking land in India to establish its manufacturing operations, with Maharashtra emerging as the leading contender, according to a report by The Economic Times on February 19.

The Elon Musk-led company has reportedly focused on Maharashtra due to its existing office in Pune and a strong network of suppliers in the state. Citing sources, the report mentioned that the state government has proposed sites near Chakan and Chikhali, both close to Pune. Chakan, one of India’s largest automotive hubs, hosts major manufacturers like Mercedes-Benz, Tata Motors, and Volkswagen.

Tesla’s India plans gained momentum following Prime Minister Narendra Modi’s meeting with Musk during a U.S. visit with then-President Donald Trump.

Additionally, the report suggested that Tesla has approached senior executives from Tata Motors for key roles in its India operations. Bloomberg previously reported that Tesla is ramping up hiring in India, posting job openings for 13 positions, including customer-facing and back-end roles, on LinkedIn.

Tesla has long engaged with India but hesitated due to high import duties. However, with India reducing its basic customs duty on high-end cars above $40,000 from 110% to 70%, the company appears more inclined to enter the market.

Despite India’s EV market being smaller than China’s, where sales reached 11 million units last year, it presents an opportunity for Tesla to counter slowing global sales, as the company recently recorded its first annual drop in EV sales in over a decade. India’s electric car sales neared 100,000 units in the same period.