April 3 (Reuters) - Tesla will send a team from

the United States to India by late-April to study sites for a

proposed $2 billion to $3 billion electric car plant, the

Financial Times reported on Wednesday, citing people familiar

with the matter.

The company's reported push into India comes at a time when

EV demand is slowing in its main markets of the U.S. and China

while competition there is heating up. That caused Tesla to

report a drop in its first-quarter deliveries and miss

estimates.

The EV maker will focus on Indian states that have

automotive hubs such as Maharashtra, Gujarat and Tamil Nadu, the

report said.

Tesla did not immediately respond to a Reuters request for

comment.

India last month lowered import taxes on certain EVs

produced by automakers that commit to invest at least $500

million and start domestic manufacturing within three years, a

move that was seen as bolstering Tesla's plans for the market.

The company has been trying to enter India for years but New

Delhi wanted a commitment to local manufacturing.

India's EV market, small but growing, is dominated by

domestic carmaker Tata Motors. EVs made up about 2% of

the total car sales in India in 2023, with the government

targeting 30% by 2030.

Tesla's entry into the Indian market could spur more EV

investments and benefit local auto parts makers, analysts have

said.

Tesla officials have been in talks with government officials

over the last year, with Musk meeting Prime Minister Narendra

Modi in June.

The company said in July last year it was interested in

building a factory in India to produce an EV priced at $24,000.

It also called for lower taxes on more expensive models it wants

to sell in India, Reuters has reported.