In October, the government of Maharashtra had invited Tesla to the state, weeks after Musk suggested entering the country next year.
Nitin Gadkari, India’s transport minister, told the Indian Express on Monday that the EV maker might look at assembly and manufacturing in India based on the sales response.
Tesla and the minister’s office could not be reached by Reuters for comment.
India has been keen to reduce its oil dependence and cut down on pollution, but its efforts to promote EVs have been stymied by a lack of investment in manufacturing and infrastructure such as charging stations.