Tesla is eyeing India — but a rival says that's 'good for the industry'

• Tesla has reportedly been considering building a new factory in India, the world's third-largest car market.

• MG Motor India executive Rajeev Chaba told CNBC the move could boost India's EV market.

• Only a fraction of vehicles sold in India are electric, but that could be about to change.

Tesla has been eyeing an expansion into India — and one local auto executive thinks it'll be good for business.

MG Motor India's CEO Emeritus Rajeev Chaba told CNBC that Tesla's potential entry into the Indian market could help boost the country's low rate of EV adoption.

"Tesla is really welcome. It'll be good for the industry, good news for the country, and for serious players like us," Chaba told CNBC.

MG Motor currently sells two types of EVs in India; it recently announced a joint venture with JSW Group to roll out more EVs in and capture a larger slice of the market there.

"I wish more and more players come, with more and more choices. Because that will give the consumer a chance to look at the various options and go for it," he added.

The auto exec told CNBC that a lack of competition was hampering India's EV industry.