Tesla Inc. is closer to making its official debut in India after it received approval to make or import four models in India which currently include Model 3 and Model Y variants.

Tesla has had its vehicles certified as being roadworthy, a posting on the website of the nation’s ministry of road transport and highways showed.

However considering the high prices of its vehicles especially after the high import tax In India which however is being considered to be lowered for electric vehicles, Tesla is planning to launch a 'cheap' hatchback worth $25,000.

Although there has been no official announcement regarding the name of this affordable EV, many expect it to be called Tesla Model 2.

This competitive price point will be achieved by Tesla's new battery cell and battery manufacturing effort that could reduce the battery costs by over 50 per cent, it added.

The firm is reportedly planning to manufacture the cars at a large scale at its Gigafactory Shanghai in China. The firm could use the same plant to export the cars globally.

India is being considered the main target of the lower priced Tesla as the vehicle market here is captured by vehicles below the Rs. 20 lakh price tag and this new model could be viable.

However autonomous cars are currently banned in India and it would be interesting to see if and how after the launch of Model 2, the modifications are made.

Besides cars, Tesla is now planning to sell electricity directly to consumers in the US. The carmaker has filed an application with the Public Utilities Commission of Texas to become a "retail electric provider" (REP). Tesla will sell electricity under its subsidiary Tesla Energy Ventures.