India is reportedly nearing an agreement with Tesla Inc. that would permit the US automaker to import its electric cars to the country starting next year and establish a factory within two years. An official announcement might be made during the Vibrant Gujarat Global Summit in January.

Gujarat, Maharashtra, and Tamil Nadu are being considered for the factory due to their established ecosystems for electric vehicles.

Tesla is expected to commit an initial investment of around $2 billion, with plans to increase auto parts purchases from India and explore local battery production. However, no final decision has been made.