Tesla CEO Elon Musk confirmed that the company is " quite likely " to build a factory in India if import tariffs can be lowered.

Tesla is currently lobbying the Indian government to lower import tariffs as the company considers plans to enter India, people familiar with the matter said. India is one of the world's largest emerging automotive markets.

"If Tesla is able to succeed with imported vehicles, then a factory in India is quite likely," Musk said on Twitter on Friday. He added: "We want to do so, but import duties are the highest in the world by far of any large country!"

According to people familiar with the matter, Tesla is in talks with India's Ministry of Road Transport and Highways, seeking a reduction in import duties on electric vehicles to 40 percent from the current 60 to 100 percent.

Electric vehicles account for less than 1 percent of new passenger car and two-wheeler sales in India, compared with about 5 percent in China. Tesla has built its first giant factory outside the U.S. in China and now dominates the Chinese market.

India's Modi administration has pledged to support the development of the electric vehicle industry through subsidies. However, constraints such as the country's inadequate charging infrastructure and high costs have limited the adoption of electric vehicles.

A senior Indian government official recently confirmed that Tesla had requested a reduction in import duties. Recently, the Indian Minister of Road Transport and Highways Nitin Gadkari said that given India's strong support for electric vehicles, now is a golden opportunity for Tesla to set up a factory in India. Gadkari also said that Tesla is already sourcing various auto parts from Indian automakers and that it is economically feasible to set up a base in the country.

This February, Karnataka state chief minister B S Yediyurappa had claimed that Tesla would set up a factory in the state. Tesla has reportedly registered Tesla India Motors and Energy Ltd. in Bangalore.